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Ftb mortgage - affordability advice

I would be grateful of any help and advice.

I have had an offer accepted on a property and with the assistance of a broker I am in search of a mortgage. So far, I have had positive decisions in principle but when it comes to a formal application I am being declined on affordability.

The property is £146K. I have a 10% deposit requiring a 90% LTV mortgage of £131,400.

I am a Police Officer and as of January this year my annual salary moved up to £31,122. Not taking into consideration an annual shift allowance of £1080 or any overtime. (So far, this financial year, I have earned £2500 in overtime).

My pay slips since the pay increase clearly shows my basic total gross pay as £2593.50 per month. The problem appears to arise when the lenders look back over the last financial year I have not earned £31,122 total taxable pay. This is because before Jan 2010 I was on less annual salary. On this basis, I am declined as they say I am not earning the amount stated, when in fact, I am.

Full details of what I earned and what I will be earning are publicly available. Google: Police Federation Pay Scales

How can I get around this? It seems to make no sense!

Comments

  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Your broker should be putting in writing/explaining to them your increment in salary...this happens to lots of people they have an increase during the tax year...so the payslip won't reflect correctly what the current salary is....who is the lender...feel yr going to say A&L
  • Gibbsey
    Gibbsey Posts: 6 Forumite
    Abbey. I did write a letter myself explaining as much as I could. I now have an app in progress with Natwest. Panicking a little though!
  • VIGILANT22
    VIGILANT22 Posts: 2,516 Forumite
    Don't panic..what you say makes absolute sense (Abbey A&L all useless underwriters) Who do you bank with?
  • jw2003
    jw2003 Posts: 786 Forumite
    My OH had changed jobs 6 months before we took out our mortgage and he doesn't pay tax at present so his taxable income for that financial year was barely £5k - Our provider took his current salary into account not his gross over the year (NatWest)
    :silenced:
  • Gibbsey
    Gibbsey Posts: 6 Forumite
    Currently with Nationwide. I have spoken to them and they have been helpful but their rates seem even more expensive for FTB's.

    jw2003's comments are hopefully a good sign with reference to the Natwest app in progress.
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