Will lender take future payrise into account?

Loopy28

I hope someone can advise?

I will be applying for a mortgage in December and have just had a letter from work confirming my increase in salary effective 1 January 2015. Is the lender likely to take this into account as my salary or will I need to wait until the end of January when I have my first payslip with this new amount?

Thanks

kingstreet

Some do, some don't.

Lender?

lee111s

Interesting question, will be in a similar situation next year. We have a guaranteed %age cost of living payrise in April 2015 and 2016. I'm looking at apply to Nationwide.

Loopy28

It will be Santander, thanks.

HappyMJ

lee111s wrote: »

Interesting question, will be in a similar situation next year. We have a guaranteed %age cost of living payrise in April 2015 and 2016. I'm looking at apply to Nationwide.

Wouldn't it be safe to say that the cost of everything you buy will also go up by the increase in the "%age cost of living" so your payrise will be consumed by regular expenses and not available for mortgage purposes.

I would have thought they may consider additional increases on top of cost of living increases when taking affordability into account such as an annual bonus which you could use to make an extra payment on your mortgage.

kingstreet

Santander won't take a payrise into account until it is actually being earned and can be evidenced. Other lenders will accept a payrise within three months of it being applied.

Loopy28

Thank you, looks like we will will have to use current salary then as we want to offer on a property but it is on the borderline of what we will be able to borrow on existing salary. We are wanting to stay with Santander to avoid an early repayment charge of £2500.

I think we will speak to the mortgage broker prior to offering to ensure we can get a mortgage for what we offer, maybe we will have to look at another lender and suck up the charge!