HTB Mortgage Application - Pay Rise/Variable Bonus

Geordie10

Hi,

Myself and my partner are currently looking into buying our first home using the Help to Buy Scheme. We have found the right property (due for release in September), have the required 5% deposit ready.

My partner is on an 8 hour 'Casual' contract (zero-hour), but will have been employed there for 12 months by the time we come to reserve in September.

Using the HTB affordability calculations, we fall just short off of being accepted based purely on my base salary plus assuming we have proof of 12 month's payslips for her job. However, there are a few extra things I have which I have received varying advice on whether it can be used - please could someone advise on this, as it hinges on acceptance or non-acceptance:

1. I have a car allowance - I have added this onto my base as accepted income

2. I have just received a merit pay increase increase which will be effective July 1st - will i be able to use this when speaking to lenders now? It is documented and in my statement.

3. As part of the above Merit, i am also just being placed on the company variable bonus plan for £15k per year, but the first payout won't be until July next year. I will have proof within my contract and official company statement, but no payments to date. I did receive a one-off unrelated disrectionary bonus about a year ago for a similar amount. Would i be able to use this plan on my income application?

4. I am on a company stock plan, with shares guaranteed to vest every year (i have proof of the account, schedule and payment amounts). This year (June) will be my first payout. This represents a considerable income which would hugely benefit my mortgage amount, but I'm hearing this isn't accepted by lenders but it is difficult to find info on. Any advice here?

The situation stands that if i can include either the new bonus plan or restricted stock/shares, we will be more than fine and can get the house we want, however if either aren't accepted then it won't be possibly this year.

Appreciate any advice or help on this or if anyone else has done something similar.

Thanks

Lilla_D

Short answer - if you need the last 2 items, then you will have to wait, as both would require a history of payments and you won't have that.

However, just to respond to the other points as well, car allowance is accepted by most lenders at 100% and the pay rise can also be used by the time you need it.

Some lenders can accept zero hour contracts, so if you speak to a broker, they will be able to help you re the right lender and the application process.

Geordie10

Thank you.

On the shares/stock (point 4), I will receive my first payout this month, so when it comes to apply in September I will have a history and a vesting schedule covering the next 3 years.

Has anyone else had any experience of this?

Thanks