Non-status mortgage loans

Q I have been working for an employment agency for the past l9 months and earn approximately ?l8,000 a year.

I am currently living in rented accommodation. With my savings and a little help from my family I could raise ?50,000, but in the area where I live there is nothing worth buying for under ?l00,000.

I have contacted various building societies, banks and insurance companies but none of them are willing to give me a mortgage because my job is not permanent, although they say there are people out there who would. My questions are: who would give me a mortgage? How much would they lend me? And what sort of interest would I have to pay?

KT

A I think you would be best advised to contact a local mortgage broker, even if this involves paying a fee. The broker should be able to come up with a list of lenders prepared to offer non-status loans.

The fact that you are able to put up ?50,000 is a big help, because quite often non-status loans are restricted to, say, 65% of the value of the property.

Another idea would be to see if someone in your family would be prepared to provide a guarantee. The amount you currently pay in rent could provide a guide as to how much you could borrow assuming you have established a good record of payment.

However, I would be surprised if you were offered a loan of more than ?45,000 to ?50,000. Non-status loans normally charge higher than average interest rates, but there is a lot of competition so the cost should not be too high. Make sure you read the small print, though, especially regarding what happens if you are unable to keep up the repayments.