Initial stage mortgage questions

jtr2803

Hi All,

My husband and I are at the discussion stage of planning to buy our first house together, hopefully next summer all being well.

I currently have one default showing which is due to fall off in Nov, no other late markers etc but will make the obligatory credit checks in the new year. Just had a few questions I thought someone may be able to help with.

I appreciate a lot will be lender dependent but I wondered how annual bonuses are considered when deciding on the maximum lending amount? Is it common for them to be included/excluded for example? My bonus is generally about 20-25% of my salary, fortunately I think we will be in a position where we don't 'need' it to be considered but thought it wouldn't hurt to ask.

I have read some info suggestion that the phrase 'first time buyers' could be loosely interpreted. Both my husband and I have been on mortgages previously, me with my first husband some 11 years ago and him with his ex girlfriend some 5/6 years ago. We are considering the help to buy scheme (and other new build incentives - I do know there are pitfalls), is there any likelihood of qualifying for a FTB mortgage rate etc? Is the definition wildly different between lenders?

Aside from ensuring there are no late payments between now and then, and that we try to plan expected expenditure to have a realistic expectation of our outgoings, is there anything else we can do to ensure an approved application or make ourselves more mortgage ready?! We have a combined basic income of £61k plus my bonus, both been with our employers over 7 years and on electoral roll etc.

Any advice greatly received.

kingstreet

Some lenders take bonuses into account, subject to track record of payment and/or an employer's reference confirming likely continuation.

You will be a FTB to some lenders, you won't to others. You'll win on the swings, lose on the roundabouts where products are concerned, but it shouldn't make too much difference.

jtr2803

Appreciate the input Kingstreet. I am not 100% au fait with current lending multiples but am sure we can finance without the bonus, that would be my ideal scenario anyway!