Quick Question

alexandria777 · 12 September 2017 at 3:33PM

Hi there,
Just had to rejoin from ages ago as I can't remember my password.
Can someone quickly remind me if mortgage companies generally use your gross or net salary when they are calculating how much you can borrow?
thanks very much

stu2500 · 12 September 2017 at 3:46PM

alexandria777 wrote: »

Hi there,
Just had to rejoin from ages ago as I can't remember my password.
Can someone quickly remind me if mortgage companies generally use your gross or net salary when they are calculating how much you can borrow?
thanks very much

Gross on affordability calculators then take all deductions/outgoings in to consideration (that's my recent experience).

kingstreet · 12 September 2017 at 3:49PM

Gross annual basic.

A percentage of gross annual overtime/bonus/commission (an average taken over an acceptable period) which varies from lender to lender.

alexandria777 · 12 September 2017 at 4:14PM

thank you both very much... is it still about 3.5 times the salary and i wonder how long you have to have been in a certain job to use your income from it..? i know these are basic questions but this seems like a good place to quickly ask. thank you very much

kingstreet · 12 September 2017 at 4:29PM

There are no income multiples. You need to use lender affordability calculators, entering your personal data to get the right results.

Time in employment varies from lender to lender. There are some requiring six months, others will accept you with a job offer and a start date.

It sounds like you should be talking to a broker sooner, rather than later.

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