Mortgage on temporary promotion -help?!

muzhik

Hi All

Myself and my fiance are first time buyers, we've saved up enough for a deposit of between 10-15% on the houses in the areas we've been looking at.

We are both in permanent employment, but my fiance is on a temporary promotion, filling in for someone who is covering someone else s maternity leave. This job pays more than her other one, and raises our total income up to 50K for the year rather than the about 43K it would be otherwise.

I initially thought this was great news for looking for a mortgage, as the higher income would make it easier for us to borrow enough to buy a decent house. Now we've started looking into it i'm a bit worried because of the uncertain status of the increased salary. It isn't entirely clear when the temporary promotion will end, and there is a possibility (with a few ifs) that the job might come up permanently - which would then make the increase permanent.

I'm worried because I'm not sure what to put down, when applying for a mortgage, as her income. Obviously she currently earns more, and has done so for a year, so all the payslips show this. But this may or may not be coming to an end in future, and is 'temporary' by definition. I'm worried that putting the higher figure without declaring it as temporary is fraud.

So a couple of questions

1) will a mortgage require us to specify anywhere that the income is a temporary increase and might be ended? Is this something we should volunteer if it isn't.

2) if the above is true, does that mean that we should apply for mortgages based on her old income, to which she would revert when (bearing in mind we aren't sure when this would be) her job reverts back down? If so would the company accept year old payslips for this!?

Grateful for any help!

ACG

Her wage is £43k then as the current wage is temporary and the lender writes to the employer the employer will confirm that.

Just speak to the lender before applying and ask them what they would expect you to put and what evidence they would request.

holly_hobby

As ACG states, the employers ref will be asked to confirm permanent position and salary.

The employer may pop in that your partner is currently acting up with a temp increased salary, but I think its pretty clear that they can't confirm the temp salary as normal renuneration, and neither should you base your costings on it for obvious reasons.

I really would not fill in your mge app with the temp higher salary, as the employer will not confirm this as accurate, and it may raise all kinds of non-disclosure issues with the lender, making them all the more twitchy overall on the whole app.

Stick to the facts and within budget, and you won't go far wrong ....

Hope this helps

Holly x

muzhik

Hi Both

Thanks very much for your replies. We've always based all our budgeting for repayments on the lower (permanent) salaries, so there is no worries there - but you've settled my worries about what to put for applications and how we'd substantiate the old salary

Cheers