What classes as income for morgage purposes?

BrettMorganxD

This is just a general enquiry. Not personal circumstances exactly, just wondering.

I know wages will count as income, and your partners too if you have one.

Do things such as tax credits, second jobs, and overtime in current jobs count.

chunkychocky

Second jobs if regular and regular overtime will count with most lenders I think. Not sure about Tax Credits.

BrettMorganxD

chunkychocky wrote: »

Second jobs if regular and regular overtime will count with most lenders I think. Not sure about Tax Credits.

But what if say, I was for contracted to 35 hours, but some weeks I did 50 some weeks I didn't. Would this not count as it is irregular?

BrettMorganxD

Also, to save starting a new thread...

Do mortgage providers go on gross income or net

hcb42

they go on affordability.

BrettMorganxD

hcb42 wrote: »

they go on affordability.

Yes but do they use your gross income or net to determine this...

GMS

Acceptable income varies from lender to lender. Some take tax credits, some don't. Same for benefits. Overtime will be 50% of with some lenders, same for bonusues.

Income used for calculations is gross.

BrettMorganxD

GMS wrote: »

Acceptable income varies from lender to lender. Some take tax credits, some don't. Same for benefits. Overtime will be 50% of with some lenders, same for bonusues.

Income used for calculations is gross.

So if I regulary do an extra 14 hour shift per week, they will count 7 of it?

bclark

hcb42 wrote: »

they go on affordability.

Do they in reality?

I ask because on the traditional calculators I can't quite get as much as I want but when we go through our in's and outs then we have an awful lot left over each month (about £1000) as we don't have a lot of outside expenses.

If I sit down with a mortage broker will they be able to arrive at a different figure based on what I can afford rather than traditional multiples?

BrettMorganxD

bclark wrote: »

Do they in reality?

I ask because on the traditional calculators I can't quite get as much as I want but when we go through our in's and outs then we have an awful lot left over each month (about £1000) as we don't have a lot of outside expenses.

If I sit down with a mortage broker will they be able to arrive at a different figure based on what I can afford rather than traditional multiples?

Same problem. I am good with money, so would unlikley get into debt. I paid £380 a month in rent when I earned £432 a month. (albeit £88 HB and £160 RTW helped).

But I still had enough left after my bills for treats etc, even managed to buy a second hand xbox for £100 one month. Never once been in debt.

So I think they should go also on how good you are with money, rather than how much you have

Meeper

How good you are with money NOW is not the same as how good you would be with money if you also had a monthly mortgage debt to pay. It's about long-term sustainability.