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mortgage taking into account dividend payments

leetransit
leetransit Posts: 7 Forumite
in Mortgages & endowments
Hi, I have a joint mortgage with my partner. If we sell the house and go our seperate ways i will be left with about 15K cash to put down as a deposit. My monthly wage is £450 with another £2K being paid through dividends as i am a share holder in a business. My problem is that my current mortgage company (A & L / Santander) will only take half of my dividends into account when offering me a mortgage which wont be enough. I have had regular dividend payments paid into my A & L current account for the duration of my mortgage and have never missed a payment. Any advice please as to how to increase my mortgage offer?
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Comments

  • ILW
    ILW Posts: 18,333 Forumite
    On an income of around 7k per year, what sort of mortgage are you hoping for?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What mortgage amount do you need?

    Only way around this is by looking for a lender that will accept a greater proportion of that dividend income.
    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.
  • leetransit
    leetransit Posts: 7 Forumite
    ILW wrote: »
    On an income of around 7k per year, what sort of mortgage are you hoping for?

    sorry i meant i get paid an extra £2k a month so i take home £2,450 a month.
  • leetransit
    leetransit Posts: 7 Forumite
    herbiesjp wrote: »
    What mortgage amount do you need?

    Only way around this is by looking for a lender that will accept a greater proportion of that dividend income.

    Santander offered my about 75K as they will only take into account half my dividends.
    I need a mortgage of about 120K.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Is that £450 Net?

    What is the gross figure?
    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.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    But you would also be looking at a 90% mortgage - is that correct?
    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.
  • leetransit
    leetransit Posts: 7 Forumite
    herbiesjp wrote: »
    But you would also be looking at a 90% mortgage - is that correct?

    Yes it would have to be a 90% mortgage.

    Also yes my take home pay is £445 a month and also i take home £2000 a month as well through dividend payments.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Well at 90% you have limited options.

    You'll need to speak with a good whole of market adviser and let them find a lender that could agree this for you.
    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.
  • leetransit
    leetransit Posts: 7 Forumite
    herbiesjp wrote: »
    Well at 90% you have limited options.

    You'll need to speak with a good whole of market adviser and let them find a lender that could agree this for you.

    Thanks for the advice. It was easy when i last got accepted for a mortgage! Strange that A&L were ok with my divi payments years ago but now i suppose the goalposts have moved.

    I presume they won't agree to take my partner off the mortgage if she moves out then either (I can get a 20k interest free loan to pay her off)
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Pay yourself more money as income is the simple solution
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