Mortgage and existing credit/debt

Lizlano1

I work at a private school and we don't have performance related pay like state schools. I am guaranteed an increase every year and will definitely be earning that in September, probably more in fact as we are awaiting a decision on pay increase which has happened every year for the last 20 years, without fail.

kingstreet

... and mortgage lenders still won't take it into account.

Lizlano1

Even the Teacher's building society?

If they don't then fine... I don't think I'm looking to borrow more than my current salary will allow, am I?

Are you able to help with the clearing debt off with proceeds of sale and this not being taken into account when calculating affordability question?

Thanks.

kingstreet

No lender will work on a pay increase which hasn't yet been granted. If they did, people would be wanting mortgages based on their 2025 pay.

Many lenders will ignore credit which is to be repaid on or before completion of the new mortgage.

Lizlano1

Thanks for that.

To be clear the pay increase has been granted. It's in my contract that as of September my pay will increase to £30,500.

What I meant was it may well be more than that as we have annual pay reviews which raise the guaranteed increase even more each year.

kingstreet

In which case, why not call the lenders you are considering and ask them their policy on future pay rises which are more than six months away and see what they say;-

Teachers BS - 0800 378669 8am to 6pm Monday to Friday.

FWIW the lenders who will accept future pay will normally only accept it if it is happening in the next three months and I can't speak for TBS as we never use them.

dimbo61

Could the bank of mum and Dad help a little more ?
Clear all your debts asap and not apply for 3 months as Lenders ask for last 3 months wage slips and bank statements.
Borrow enough to buy property and repay parents after sale/purchase of next home.
Moving is expensive with buying/selling costs, stamp duty, solicitors, mortgage fee, etc