Mortgage limit

ACG

Sorry you did say £330k i missed that.

If your partner takes £900 a month and declares an income of £10,800 to the tax man then her income may be taken into account depending on how long she can prove this for (usually 2-3 years are required).

The general rule of thumb is 4x basic income and 50% of bonus income multiplied by 4 although 5x basic and 5x 50% of bonuses may be possible.

If you can get your partners income to be included then it might just fit with the odd lender but i would strongly suggest you find a good broker as this will be difficult. At best your partners income could cancel out the car finance effectively. It is very tight and i wouldnt want to say its a dead cert but i wouldnt give up just yet.

Mindovermatter_2

maisie1234 wrote: »

Some mortgage companies just dont take certain things into account.

We have a mortgage with 7 yrs left to run (owe £220k). We wanted to remortgage. They wouldnt take my partners dividends into account and didnt believe that we havent any travelling costs. I am a home work with travel to my clients paid. They also wouldnt take into account my 25% bonus as it wasnt 'guaranteed'.

We have £800K equity in the house. I have worked for my company for nearly 30 yrs and husband 15 years. No debts bar the mortgage. They didnt like the school fees element of our outgoings. I explained that if we couldnt afford the school fees there would be debt everywhere on loans and cc and that if we really couldnt afford it we would think again. Both boys going to boarding school so VERY expensive. This company (very well known) didnt take equity into account. We have never missed a payment etc etc.

So, I told them to stuff their application process. Even the call handler recognised that something wasnt quite right and offered to pass onto 'Special Circumstances'. Couldnt be bothered and we have 2.99 with Santandar fixed for 5 yrs.

Used Which mortgage and they were fab....

Thanks Maisie, it's Interesting to hear. I understood that I had a variable income and my partner was self employed, which is why I went to a "whole of the market" broker to sort it out. I'm starting to think I should just do all the leg work myself.

Mindovermatter_2

ACG wrote: »

Sorry you did say £330k i missed that.

If your partner takes £900 a month and declares an income of £10,800 to the tax man then her income may be taken into account depending on how long she can prove this for (usually 2-3 years are required).

The general rule of thumb is 4x basic income and 50% of bonus income multiplied by 4 although 5x basic and 5x 50% of bonuses may be possible.

If you can get your partners income to be included then it might just fit with the odd lender but i would strongly suggest you find a good broker as this will be difficult. At best your partners income could cancel out the car finance effectively. It is very tight and i wouldnt want to say its a dead cert but i wouldnt give up just yet.

Thanks ACG, I think your right a good broker appears to be key, I honestly didn't think I was asking for too much. I haven't seen my partner accounts, but it is all declared as it should be and has been self employed for 8 years. I think I may clear the car over the next 6 months and start again!

Mindovermatter_2

ACG, I will get a "true up" in December and will take home after pension payments of about £33k that month, although I don't always get this amount, I can get more than my target earnings. Would this payslip be of use for getting a larger mortgage, I believe they ask for last three months?

ACG

I dont mean to sound like im sitting on the fence but i dont want to say yes and build your hopes up and likewise i dont want to say no and you give up - so im going to have to sit on the fence...

With something like this, i would probably get the last 6 months payslips to show this true up thing happening quarterly. I would also get a copy of this/last years P60 and possibly even the previous years if it will help evidence that you are consistently hitting target or over hitting.

The more you can show to evidence that you have been hitting £80k plus and that it is likely to carry on in the future the better.

Its just a case of finding a lender where criteria wise this could fit and then doing as much as possible to get an underwriter onboard with it. When it comes to income stretches - especially above 5x where there are commitments your choice in lenders is going to be limited. This means your unlikely to get the best rates available... but sometimes its a bit of a toss up.

If your putting that much into a pension, it may be that you do the mortgage over a longer term in order to fit affordability as you will be able to evidence a means of paying this off once you do retire - but these are all things i would assume your broker will look into and try and find a way of getting it to proceed.

Thrugelmir

The issue with salary sacrifice is that it's not possible to dip and out of the scheme as you wish. The HMRC are very rigorous on this point when reviewing how companies operate their schemes.

So from a lenders perspective your actual take home is what counts.

Thrugelmir

maisie1234 wrote: »

So, I told them to stuff their application process.

More than likely they weren't interested in your business either. There's plenty of people who pay their children's school fees at the expense of other creditors. Unfortunately the days of a handshake to seal a deal are well past.

Mindovermatter_2

ACG wrote: »

I dont mean to sound like im sitting on the fence but i dont want to say yes and build your hopes up and likewise i dont want to say no and you give up - so im going to have to sit on the fence...

With something like this, i would probably get the last 6 months payslips to show this true up thing happening quarterly. I would also get a copy of this/last years P60 and possibly even the previous years if it will help evidence that you are consistently hitting target or over hitting.

The more you can show to evidence that you have been hitting £80k plus and that it is likely to carry on in the future the better.

Its just a case of finding a lender where criteria wise this could fit and then doing as much as possible to get an underwriter onboard with it. When it comes to income stretches - especially above 5x where there are commitments your choice in lenders is going to be limited. This means your unlikely to get the best rates available... but sometimes its a bit of a toss up.

If your putting that much into a pension, it may be that you do the mortgage over a longer term in order to fit affordability as you will be able to evidence a means of paying this off once you do retire - but these are all things i would assume your broker will look into and try and find a way of getting it to proceed.

Thanks again, I can evidence hitting target over the previous years (with company 8 years) however I've only been earning this amount for two years. I must admit we are not desperate to move and thought it would be relatively straight forward, based on what we were comfortable with. However I think I may pay off car in Dec and then reassess in the new year, and ask for a pay rise in the meantime!

Higher rates, although not ideal are not a problem, as I can over pay and hopefully re-adjust LTV rate, however thanks for your suggestions, you have already shown a deeper consideration for my situation than the broker I spoke to.:T

Mindovermatter_2

Thrugelmir wrote: »

The issue with salary sacrifice is that it's not possible to dip and out of the scheme as you wish. The HMRC are very rigorous on this point when reviewing how companies operate their schemes.

So from a lenders perspective your actual take home is what counts.

I can alter my pension payments annually, but change them for life changing event, such as moving house.