Query regarding finances/employment contract and mortgage application

Daffodilly_2

Hi all, I have a query regarding a new job and where I would stand if I wanted a mortgage in the future. The pay structure is unusual in that I will be employed full-time (35 hours per week) and it states this on my offer letter (I've not had a full contract through yet) but I am paid a full-time salary for the first 3 months (the probation period) and then move on to an hourly rate which differs for time spent with the client vs travel time. This should work out at more than the initial salary. This then increases as I meet certain competency levels and it is expected that within a few years I will have reached the highest point.

I'm not sure how this would be seen in terms of a mortgage application? My new employers have been very clear that it's not a zero hour contract, I am contracted full-time on a permanent contract for 35 hours per week. They have also said that others have had no difficulty with getting a mortgage and they have written letters to support mortgage applications as needed. I know that if you're self-employed you tend to have to give a couple of years of proof of earnings and if you're employed you can potentially get a mortgage with 3 months worth of pay slips but I'm not sure where my situation lies? Would a lender want a certain number of months proof of pay once I am on the hourly rate? No-one that I've asked seems to know the answer. Any help would be gratefully appreciated.

anniecave

I would imagine they would just want to see at a maximum your last 3 months payslips. You would have to be realistic in terms of what you put as your annual salary, as it would need to be based on the payslips to date unless you had justification for a higher amount.

The self-employed 2 year thing is completely different (because self-employment is legally completely different to being employed).

amnblog

It depends what it says on your contract but worse case you would need to evidence how the income works out on the client to travel ratio over three months payslips. Otherwise the lender is guessing.

If, for example the travel time is the lower figure and a salary based on 100% travel meets the affordability requirement, it is much simpler for an underwriter.