Using tips as income in a mortgage application

Jade_dragon

Hi all, have learned a lot from this site, but one thing I can't find info on is to do with using tips as income towards a mortgage application.

I have worked as a waitress for 3 years during uni and in Jan 15 I started work at a 'real job' while keeping the waitress job in the evening. I did this until Spetember when I was not continued after the probation period, after which I bumped up my hours waitressing. This employment allowed me to save up a deposit quickly and my partner and I began an application for a property in April and our DIP was £240,000
This purchase fell through in September as the sellers tried to ghost gazump us.

We have recently found another property and have gone to get another DIP based on my new position of having one employment, my partner has not changed circumstance.
Nationwide have said they will not take my tips into account as my income so our new DIP is £98800 as my basic barely goes above the tax threshold. If they inclued my tips it would be about £40,000 higher.
They say they are not part of my regular income but they are paid through paye and I get one payment by bacs into my account inc both wage and tips. I pay tax on them so they are part of my taxable income, so why can't I use them in my application.

It wasn't an issue when I had the other job, but now they could mean the difference between properties.

Any advice or source of literature appreciated. I would like to take this matter further with nationwide.

HappyMJ

Jade_dragon wrote: »

Hi all, have learned a lot from this site, but one thing I can't find info on is to do with using tips as income towards a mortgage application.

I have worked as a waitress for 3 years during uni and in Jan 15 I started work at a 'real job' while keeping the waitress job in the evening. I did this until Spetember when I was not continued after the probation period, after which I bumped up my hours waitressing. This employment allowed me to save up a deposit quickly and my partner and I began an application for a property in April and our DIP was £240,000
This purchase fell through in September as the sellers tried to ghost gazump us.

We have recently found another property and have gone to get another DIP based on my new position of having one employment, my partner has not changed circumstance.
Nationwide have said they will not take my tips into account as my income so our new DIP is £98800 as my basic barely goes above the tax threshold. If they inclued my tips it would be about £40,000 higher.
They say they are not part of my regular income but they are paid through paye and I get one payment by bacs into my account inc both wage and tips. I pay tax on them so they are part of my taxable income, so why can't I use them in my application.

It wasn't an issue when I had the other job, but now they could mean the difference between properties.

Any advice or source of literature appreciated. I would like to take this matter further with nationwide.

Tips are not guaranteed so not included as income.

Speak to a mortgage broker you may be able to present your income in a different way.