Will i get my mortgage? So worried i won't :o(

cmason561

I have applied for a mortgage for the house i have put an offer on. The mortgage was agreed in principle and everything is going through at the moment. I sent off my wage slips etc on Friday. The problem is a large chunk of my wages is made up with overtime. I earn £21000 Basic and upwards of £14000 extra for overtime. I have applied for a mortgage of £114300 with a deposit of £12700. I got a letter from my boss stating that my overtime is guaranteed for the foreseeable future. Surely this should be good enough for the bank? I’m so worried they will say no as I really like the house.


Thanks for your help

confused31_2

I personally wouldnt get a mortgage based on overtime, no one can guarantee you will get overtime thats why its called overtime, where i work 12 months ago we had overtime and shift money, 12 months on no overtime and no shifts.

But people had took mortgages based on what overtime/ night shift money they had done in previous years, now some of them are in a right mess.

_Andy_

Which lender is it?

cmason561

The lender i have applied with is HSBC

poppy10_2

If the overtime was guaranteed it wouldn't be overtime. And 'for the foreeable future' is meaningless. In this climate banks will be reluctant to lend you 5x your base salary, particularly prudent banks like HSBC which are not under government pressure to lend more, as they did not take a bailout.

opinions4u

poppy10 wrote: »

If the overtime was guaranteed it wouldn't be overtime. And 'for the foreeable future' is meaningless. In this climate banks will be reluctant to lend you 5x your base salary, particularly prudent banks like HSBC which are not under government pressure to lend more, as they did not take a bailout.

Based on the number of posters on here saying "RBS declined me", Halifax raising rates for new borrowers and Lloyds/C&G tight underwriting, I don't think the bailed out banks are really choosing to splash the cash at the moment either!

Poppy's point stacks up OP. It's cheaper for an employer to remove overtime (as it's not contractual) than to make people redundant, which involves statutory cost.

1) You rely too much on your overtime
2) You will struggle if it is ever reduced or stopped
3) Lenders know this, and I think your high reliance on overtime and your low deposit will mean you get declined.

cmason561 wrote: »

I got a letter from my boss stating that my overtime is guaranteed for the foreseeable future. Surely this should be good enough for the bank?

How long, precisely, is "foreseeable future" and how long is your mortgage term?

I’m so worried they will say no as I really like the house.

Living in a lovely house surrounded by debt and misery is a worse experience than missing out on buying the house because you can't get a mortgage.

Sorry if it's not good news.

Even if HSBC say yes to you, I would suggest you give some serious thought to not going ahead with the purchase.

benjo

opinions4u wrote: »

Living in a lovely house surrounded by debt and misery is a worse experience than missing out on buying the house because you can't get a mortgage.

Never a truer word spoken