When is proof of income required?

tmsoaa

Hi

I am planning to move cities and jobs and would like to get a mortgage offer on my current salary in case I have to take a pay cut to facilitate the move. I'll be able to afford this as my wife's earnings will increase when we move, but we can't evidence that as she has only recently set up her business and hasnt been in paid employment.

At what stage in the mortgage process am I likely to have to prove my salary to the lender? I am wondering if I need to wait until I have bought a new house to move jobs (which will be tricky due to moving cities) or if I can get the offer then seek a new job to hopefully coincide with moving house.

Any advice or experience appreciated - thanks a lot.

amnblog

If you live in Manchester and want to buy in Leeds the lender will ask what the plan is.

Sounds like you don't have one.

tmsoaa

The plan in that example could be to keep my job and commute, or live with family during the week - plenty of people do that.

If you or anyone was able to help with a bit of advice on the question that would be really helpful - at what stage are lenders likely to ask for proof of income? Thanks.

StuC75

how far a commute are you looking to take on in the 'worse case'.. how much would that then cost you in either petrol, or additional cost while you stay elsewhere.. Some journeys would be accepted

What would that then mean in terms of affordability..

what amount salary sacrifice are we talking.. is it £5kpa to commute and 10k less if switched jobs (so a more costly route except saving time..)..

kingstreet

tmsoaa wrote: »

my wife's earnings will increase when we move, but we can't evidence that as she has only recently set up her business and hasnt been in paid employment

Many lenders want a trading period of at least two years. The odd one might accept a single year's evidence of income, an SA302.

At what stage in the mortgage process am I likely to have to prove my salary to the lender?

When you submit your application.

Payslips and P60 are the usual requirement.

Wh05apk

Lenders will accept two scenarios in this case:

1. you have got a new job, and are moving for work, in which case they will normally accept a job offer letter and contract, or

2. you will be commuting, in which case they will want to know about your additional costs which will be involved.

amnblog

Wh05apk wrote: »

Lenders will accept two scenarios in this case:

1. you have got a new job, and are moving for work, in which case they will normally accept a job offer letter and contract, or

2. you will be commuting, in which case they will want to know about your additional costs which will be involved.

They also have to consider the trip 'commutable'

Wh05apk

amnblog wrote: »

They also have to consider the trip 'commutable'

I had a good one with Accord a while ago, client buying in Wimbledon, worked in the City, they wanted to know how he would manage the commute! Apparently now they have strange trains which run in tunnels under buildings now, Accord were not aware!

amnblog

Amazing how little people understand of the geography of their own country

kingstreet

Perhaps they don't stray too far out of Yawksha.

Yorkie1

kingstreet wrote: »

Perhaps they don't stray too far out of Yawksha.

Well, who in their right mind would want to? It is God's own county, after all ...