ways to increase the amount to borrow

NannyV

Hiya, my partner's basic wage is about £40k and this year with over-time he has had about £53k but if you put that into the Halifax calculator it says we can borrow about £210,000 but if you say his basic is 53 you can borrow much more.
We need to move in about 2 years and by then he might be on 53k but not sure yet. His boss will also retire in a few years and my partner would then be a business partner. How does that change what amount we can borrow?


Thanks

HappyMJ

Future possible income makes no difference. It's the income at the time of the application. Overtime is not always guaranteed. Maybe your partner could get a salary increase for more hours worked per week with less paid overtime....i.e if he's contracted to do 35 hours a week for £40k he could negotiate 40 hours a week for £46k and £7k would be overtime for hours in excess of 40.

NannyV

yes I am thinking his boss could temporarily change his pay .. we ideally wont move until another year or 2 but wondering what we could borrow then, compared to now if he is a business partner then, but we wouldn't want to the house to be claimed if the business ever went under..... not sure how the mortgages change once he becomes the partner?

holly_hobby

As MJ says, what ifs and buts re possible future increase to income, can not be assessed.

Unless his OT is a contractual requirement (ie mandatory set no of hrs per month as per working terms), then it naturally can't be taken in its entirety - as the hrs worked and OT pay recd, may and can vary considerably as per operational requirements or even your partner choosing not to take any OT.

If proven as regular over a defined period (supported by payslips/p60), they will generally be happy to consider a portion of it.

Once he becomes a business partner (or a controlling ltd co director) he will be classed as self employed, with SA302s/accounts reqd to support delcared income, if its a Ltd Co and he has a shareholding generally below 25%, he will still be classed as an employee, with payslips/p60 as reqd within the uw process.

Hope this helps

Holly

HappyMJ

NannyV wrote: »

yes I am thinking his boss could temporarily change his pay .. we ideally wont move until another year or 2 but wondering what we could borrow then, compared to now if he is a business partner then, but we wouldn't want to the house to be claimed if the business ever went under..... not sure how the mortgages change once he becomes the partner?

Depends if he is an employee of the company or not.

As an employee of a company it will still be his PAYE salary that is taken into account.

If the business is not a limited company then his share of the profit of the business would need to be taken into account which is much more difficult to work out.

If a limited company went under there would be no claim on his house. The liabilities of the business are limited to the company.

If a partnership went under then there could be a claim on his personal assets including the home.

NannyV

I think my partner needs to have a meeting with his boss to find out all the above so we can decide if we need to move before he is a partner or after...... his over-time has been consistant for the last 2 years but yes it could stop so the key is for his basic to be higher when we need to move, but it depends on what being a partner means so we will ask the above points to his boss. Thanks

PasturesNew

NannyV wrote: »

... my partner's basic wage .. he has ... his basic ...he

You could get a weekend/evening job....

NannyV

I am on maternity leave but returning to childminding where my income will only be about £8k a year and self-employed so that makes it difficult too ..... my income could be about £19k when my son starts school but again my OH could be a business partner by then so trying to think when the best time to borrow is

Thrugelmir

Save or build equity now. Then you control your own destiny. Rather than speculating as to what might happen . So many twists and turns in business.

NannyV

we are currently saving every spare penny anyway, but we didn't think we could borrow anything else so were surprised when it could be 250k, our current mortgage is 174 so we have about 60 to 70k equity but have 3 kiddies and hoping to add one or 2 more to the family so would want an extra bedroom really - hence trying to figure out what the future looks like.

Just really trying to see at what point over the next few years the banks will lend us the most and getting an idea of what sort of house we can move too to see if its worth it.