Part time or fulltime job

[Amateur bob]

Can anyone help me, my wife is trying to decide whether to go back to work 3 days a week or fulltime, childcare would then be needed at £50/day, does a lender distinguish between a part time and full time job or just go on the joint salary multiple? Im self employed and only made 14k last year, my wife earns 20k full time, we are looking to build a house with estimated build cost of 230k and deposit of 110k, plot owned outright so needing to borrow 120k

[Thedreamer]

10 minutes ago, Amateur bob said:

Can anyone help me, my wife is trying to decide whether to go back to work 3 days a week or fulltime, childcare would then be needed at £50/day, does a lender distinguish between a part time and full time job or just go on the joint salary multiple? Im self employed and only made 14k last year, my wife earns 20k full time, we are looking to build a house with estimated build cost of 230k and deposit of 110k, plot owned outright so needing to borrow 120k

 

Might be difficult to borrow £120k on the earnings suggested. Self build mortgage are more risky for lenders, so until you start asking question \s with the lender you might not know.

 

Can you not lower the build costs and then upgrade as you go along?

 

On your wife's job, I don't think it really matters as you could be 50% part time on a £50,000 salary or full time on £25,000.

 

Our application was really tough and was offered stupid amounts at the start. This was despite having a serviced site, £38k grant offer and around £40k in cash. 

[Amateur bob]

20 minutes ago, Thedreamer said:

 

Might be difficult to borrow £120k on the earnings suggested. Self build mortgage are more risky for lenders, so until you start asking question \s with the lender you might not know.

 

Can you not lower the build costs and then upgrade as you go along?

 

On your wife's job, I don't think it really matters as you could be 50% part time on a £50,000 salary or full time on £25,000.

 

Our application was really tough and was offered stupid amounts at the start. This was despite having a serviced site, £38k grant offer and around £40k in cash. 

I just wondered if the full time "status" made any difference, yes i could mabye do it with 100k mortgage but would prefer a contingency, id hoped with the plot being owned and 110k cash this would help, are we likely to be turned down completely or just offered a lower amount?

[Thedreamer]

 I would think you would be offer a mortgage it might just be less than you expect.

 

The three areas that me and the lender had countless emails about.

 

1 - Stressed borrowing interest rates on the self build product rather than at a residential product.

2 - The lender made up figures for monthly expenditure, night outs meals etc. But there are no night clubs where I live!!

3 - Would not take into consideration that we had very little outgoing costs during the build as we were living with family.

 

The net result after months of email was that we got what we needed, but it was the worst bit of the build. 

 

In the end the house was valued £50k more than expected, £20,000 was not drawn on the self build mortgage and I am now going to be clear of the mortgage in 13 years when I am 47.

Edited January 16, 2021 by Thedreamer

[Amateur bob]

thanks for the feedback thedreamer very helpful, anyone else had experience of this?

[recoveringbuilder]

Ah @Amateur bob nice to see you back, did you eventually get your planning permission?

[Amateur bob]

turned down but reapplying