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Earnings

mulletdreamer
mulletdreamer Posts: 18 Forumite
Part of the Furniture Combo Breaker
in Mortgages & endowments
Hi all, just pondering what 'three times income' actually means. Does it mean gross annual pay, net pay, basic wage minus overtime, bonuses, etc?

Comments

  • kingstreet
    kingstreet Posts: 39,290 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mulletdreamer wrote: »
    Hi all, just pondering what 'three times income' actually means. Does it mean gross annual pay, net pay, basic wage minus overtime, bonuses, etc?
    Lenders normally take gross annual basic salary, plus a percentage of any variable earnings, such as overtime, bonus or commission. Typically around 50% of variable earnings is allowed.

    From that, you need to deduct the annual equivalent of any monthly loan, credit card or other commitments before multiplying.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 24,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Your wage before any deductions.
    But they then deduct any outgoings (childcare, loans, HP, credit cards etc)
    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.
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