Factors considered in a mortgage application

yllop1101

I will soon be applying for a mortgage. It's sooner than ideal, but the home I'm renting is coming up for sale and the landlord can't delay, so my circumstances now are a little different as to how they will be in a fee months time, e.g.
1. Now, I'm working just less than full time (34 hours per week) due to studying, but will be going up to full time end of July (employers happy to provide letter stating this).

2. Travel costs now are higher than they will be once I've finished studying. £160 now, end of July about £100.

I know these aren't huge differences but I don't earn lots and think they will make quite a difference in what's viewed as spare income.

Also, I live with my partner so he will be contributing to the rent (it's shared ownership so he will cover the rent part) and bills, which make it really affordable. He will have no financial interest in the property and happy to do a deed of trust if needed (before people panic about that). Will this be taken into account too as extra income? Or would I be able to exclude the things he will pay for on my declared expenditure?

If we weren't together I would be able to get a lodger as it has a spare room and in a desirable area.

Any thoughts welcome!

ACG

Extra income in July should be accepted by most lenders with a letter.
Reduced travel costs is a little hit and miss I think.
Your expenditure will be assessed using ONS figures in the main, so saying he will pay for food will not do anything. You can not use the rent he is paying as an income (the same coudl be said for if you had a lodger - there are exceptions but I do not think this would fall in to one).

yllop1101

ACG wrote: »

Extra income in July should be accepted by most lenders with a letter.
Reduced travel costs is a little hit and miss I think.
Your expenditure will be assessed using ONS figures in the main, so saying he will pay for food will not do anything. You can not use the rent he is paying as an income (the same coudl be said for if you had a lodger - there are exceptions but I do not think this would fall in to one).

Ah ok, that's a relief. I had asked them today if I could increase my hours before I finish studying and it was a maybe but not a definite, so that's reassuring. I'll have to ask if they can include my post qualified pay rise in that letter too :rotfl:

Shame the other things are excluded. It's crazy when it's about £300 per month cheaper as a household /for us both than renting, but they won't factor that in. That's the problem with not doing a joint application I guess.

ThePants999

yllop1101 wrote: »

Shame the other things are excluded. It's crazy when it's about £300 per month cheaper as a household /for us both than renting, but they won't factor that in. That's the problem with not doing a joint application I guess.

Aye - as a single applicant, they have trying to satisfy themselves that you can repay by yourself. As your partner will no liability to them at all, they can't work on the basis that he'll contribute.