Mortgage Loan

If yes, is there anyway to get around this job history requirement.

The ONLY way around it is either NOT obtaining financing through a traditional lender OR have two years of work experience working in the same job capacity….not the same employer per se. Banks just are not giving out loans to people unless they have a documented stable employment history.

My boyfriend was told by his bank recently that he earns more than enough for the mortgage we want, but that he will need to provide 2 years worth of book-keeping from his business (yes…2 years!!!!!!!!) in order for us to get the mortgage based on his income. This is a huge blow, as he has only recently become self-employed, meaning we’d have to wait until 2012 to buy somewhere.

His circumstances are unusual in that although he is now self-employed, he is continuing to work for the same company (a large oil company) as he has done for the previous 3 years. However, since going self-employed he has been given a substantial pay increase and also no longer has agency-type companies taking a cut from the money the oil company pays for his work. This means we cannot use financial evidence from before he went self-employed as we would get a much lower mortgage. We have a large deposit and he is now earning a very healthy salary so it is infuriatuing that we’re being told we have to wait 2 years, considering an employee of a company can get a mortgage based on a few months payslips.

The bank he visited (Clydesdale) suggested we return in 6 months and bring evidence from the company he works at stating he’s been there for so many years etc but that basically they could makes no promises that they’d let up on this 2 year thing. Can anyone at all advise on any other banks or services that we could use to get a mortgage sooner, based on our circumstances? Many thanks for any suggestions!
The issue for us is my boyfriend is not going out touting for work like most self-employed people who can’t guarantee their monthly income. He is doing the same job, in the same company as he has done for over 3 years. He has a contract with them as he had before, only now they pay his business rather than him as their employee. I’m just wondering if any banks will consider this factor.

As for our personal circumstances, rather than squander money on rent, my boyfriend and I chose not to live together so we could save for a deposit, which we have done very successfully. We want to live together before marriage and have discussed legal issues regarding if we should split or one of us should die. We’ve been together for over 5 years and buying a house is the next step for us before marriage and children. This 2 year wait is a huge set back for us.

Buying a home with a boyfriend is not a good idea. Unlike buying with a spouse, you do not have the same legal rights, nor do you have access to the court system to work out a fair solution if you split up. If you are willing to take on a 15 or 30 year mortgage, then marriage should be on the agenda first. Otherwise, you definitely need a contract that sets out what becomes of the equity in the home, and who will reside in the home if you split.

Self employed people definitely should bank locally so they have a good relationship with their banker, who has a stake in the well being of the community. If he has a written Contract to provide work for his former employer with a set minimum income for a year, and can put 30% down payment on a reasonably priced home, a community bank may be able to walk an application through the process.

Continue to rent and build more savings while establishing a strong history with the company as a contractor, and building a relationship with a local bank. Buying a home is a huge long-term commitment so setting out a written timetable on how to get to the point where you can buy a home together is going to be in your best interest.

Instead of being infuriated, consider that these roadblocks may be blessings in disguise. It gives you both time to know more about what it takes to be self employed, and develop a plan for your future.

Just turned 18 and am looking into getting on the property ladder asap.
Are banks likely to turn me down for a mortgage.

You need 2 years of income tax returns, so you will have to wait until you are 20 or pay cash.

Home in Mom’s name. Married to our Step-dad for 30 yrs. Home is paid for. They receive 2500.00 mo, (soc. sec. & his pension) Our step-brother handles their finances & now says they have no money & wants them to get a 2nd mortgage/loan on this home. Mom has a will leaving the home to her children..this was agreed upon when they married, his 1st family got his home after the youngest child became 18. Step-dad has a will but we have not seen it.They are both 82 & in very poor health. Bills are taxes, groceries, cable & utilities, health insurance for Step-dad, Mom is on Wisconsin’s state health plan & some medications they pay out of pocket also. We think our Step~brother is trying to make himself some easy cash & are afraid he will trick our Mom into signing for this. Aren’t they too old & sick to even qualify for another mortgage or loan? And if not, what can we do to prevent this from happening?
Thank-You in advance for any help you can give us & for taking the time to read our questions.

I would absolutely look into a reverse mortgage in that situation, they could get monthly payments or a lump sum of the equity. Only down fall (as you said home goes to the kids) – the home will go to the bank in the event of their passing or if they move. Also, a reverse mortgage will be (if they decide to do that) the only type of mortgage they can have on the home, they can have multiple reverse mortgages, but not reverse and refinance or reverse and 2nd mortgage – just reverse mortgage/s.
Good luck, and help them look into a reverse mortgage if you can (sounds like one handling their finances is steering them wrong – very sad). At their age and health they deserve financial peace of mind.