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    • CarBuyer
    • By CarBuyer 14th Mar 17, 9:30 AM
    • 3Posts
    • 1Thanks
    FTB Mortgage & Salary Increase Timing
    • #1
    • 14th Mar 17, 9:30 AM
    FTB Mortgage & Salary Increase Timing 14th Mar 17 at 9:30 AM
    Hi all

    Background: I am a trainee solicitor, currently earning c.£38,000. I qualify in early April, but will start receiving a higher salary (c.£60,000) as of next Friday. It is a permament position and I have a signed employment contract.

    Problem: I am looking to buy a house outside of London with my girlfriend. She earns around £30,000. We have seen a few places that interest us for anywhere between £280,000 and £400,000, but I have been on a few affordability calculators online to see what we could borrow and they range massively from £222,000 to £434,000(!), assuming a 10% deposit. This assumes the higher salary I will be earning.

    Issue: How do you think a lender would view a "positive" change in circumstances (i.e. my salary increase)? Would a signed employment contract be sufficient evidence of earnings in order to unlock higher mortgage amounts now?

    I'd like to know that we could borrow x amount and then if we see a lower priced house we can make an offer quickly. However, I don't want to be too hasty in making credit applications now if "larger" (and better rated) mortgages might be available in 3 or even 1 months' time, should the employment contract not be sufficient proof of earnings.

    Thanks for any replies!
Page 1
    • shortcrust
    • By shortcrust 14th Mar 17, 9:55 AM
    • 1,654 Posts
    • 2,255 Thanks
    • #2
    • 14th Mar 17, 9:55 AM
    • #2
    • 14th Mar 17, 9:55 AM
    My NHS contracts were accepted by Halifax as proof of income. I applied pretty much straight after a promotion.
    • cashbackproblems
    • By cashbackproblems 14th Mar 17, 10:08 AM
    • 1,718 Posts
    • 677 Thanks
    • #3
    • 14th Mar 17, 10:08 AM
    • #3
    • 14th Mar 17, 10:08 AM
    If you haven't yet had an offer accepted surely your income proofs will show the new amount by next week?
    • ACG
    • By ACG 14th Mar 17, 10:16 AM
    • 16,479 Posts
    • 8,537 Thanks
    • #4
    • 14th Mar 17, 10:16 AM
    • #4
    • 14th Mar 17, 10:16 AM
    Assuming you make an application after your first pay slip showing the new wage is printed, you will be fine.

    If you make an application before next friday, then you would need to speak to the lender before applying.

    In all honesty, with it being so close I would be very surprised if any lender had an issue with it.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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