mortgage q

debtfreein4years

silly really but i cant seem to find the answer on any bank websites.

when you apply for a mortgage do they take into account your net or gross salary.

my oh works away and doesnt pay any uk tax as he is out the country for approx 7 - 8 months of the year. if we were to buy a house with a mortgage would the bank take into account his salary is tax free and that his job is 99.9999% secure? for info he is a merchant seaman and has a 5 year contract with 4 years still to go.

thanks

herbiesjp

Lenders use the gross salary figure.

Each lender would really have to look at the application, based on your OH tax status and. The contract should not be a problem with most lenders.

However I would recommend discussing with a whole of market adviser rather than applying direct, as a broker will verbally discuss with lenders first (rather than unecessary credit checks) in order to avoid getting multiple declined applications due to your OH maybe being outside of criteria with them.

lembert

Abbey use take homepay and affordabilty as opposed to multiples.

herbiesjp

The affordability calculator I use for Abbey uses gross income.

I think you will find that lenders will use gross income as the base point and then their calculators will then make their various deductions etc. to come up with a mortgage amount based on either multiples or affordability

If you were to put your takehime pay in the calculator (net pay) then that would give you the wrong answer in the calculator

Met_Bobby

The lender can't be sure that the 'qualifying days' rules won't change or that the your husband's ships won't start sailing in UK waters (no matter how unlikely). They will usually work off gross income but if the deposit is large enough they may offer higher multiples due to affordability.

koexelek

Gross pay for the employed
Net profit for the self employed