Do Lenders Cosider Overtime when Deciding How Much to Lend?

united4ever

Been doing overtime for about 6 months now which tyipcally brings in an extra £600 (£450 after tax) to my monthly pay packet. I can evidence this with pay slips. Would a lender include this in their multiples when working out an offer and if so how? Would they take an average over 6 months (the amount does fluctuate a bit).

HappyMJ

They can...However, if you are borrowing more based on your overtime you will be stretching yourself to the limit and may even be exceeding it. If the overtime stops will you be able to afford the repayments.

united4ever

I realise this, thing is am currently in a shared ownership flat and when I add rent and service charge to my mortgage I am paying per month more than the type of mortgage I am after (although I realise interest rates will rise eventually).

Thrugelmir

united4ever wrote: »

I am paying per month more than the type of mortgage I am after (although I realise interest rates will rise eventually).

Houses cost money to maintain. Something which rent is unclusive of.

opinions4u

Lenders will consider overtime.

More important that you consider how you would cope if your employer removed the overtime opportunity.

Borrow based on basic salary. Overpay with overtime.