Santander disregarding shift allowance in their calculation? Any advice?

Z-dawg

Hi guys!

Just spoke to my mortgage advisor and Santander has come back to us saying they calculated my annual income at £24.000 because they disregard the 25.3% shift allowance we get each week on top of our basic rate! We work 12 hour continental shifts, 4 days on and 4 off. The shift allowance is paid because of this, every week no matter what! It's not a bonus or something you might not get from time to time! It's part of our pay structure!

Anyone has any idea if there is a way to prove to the underwriters that it's part of my actual income! I have years and years worth of payslips, and it's on every single one of them! Always the same amount (obviously changing in accordance with pay rises)

Fiesto88

Did you have a payrise on one of the payslips you've given them? Just a thought as it might have made it appear to be a variable amount. If it's consistent each month all you can really do is ask for an explanation of why they won't use it and offer more payslips to prove you've always had it.

nikkih72

we had this with Santander, there rate is very good, and they are very tight on who they lend to,
We eventually went with Natwest, they take everything into account, and not a bad rate

Z-dawg

Fiesto88 wrote: »

Did you have a payrise on one of the payslips you've given them? Just a thought as it might have made it appear to be a variable amount. If it's consistent each month all you can really do is ask for an explanation of why they won't use it and offer more payslips to prove you've always had it.

The payslips provided were all for the same rate of pay, so the amount is consistently the same (it actually says shift allowance 25.3% next to the amount in brackets, so it's pretty obvious that the amount is 25.3% of my basic salary) I also do overtime quite a bit, which varies weekly, so if they disregard that, that's understandable. But the shift allowance is part of my weekly pay! That's why it's annoying!

I also have another question, if you don't mind! We are JUST under the affordability because of this whole disregarding scenario! The only debt we have is a loan that has £4500 Left on it at £270 a month! We have the facility to settle this (even though we wanted to spend the money on the property) so that would free up £270 a month. Do you think by doing this there's a decent chance that we get the offer (providing the valuation of the property checks out)? I mean that amount would push us right over the affordability threshold. But I don't want to risk paying the loan off just to get turned down! Our credit scores are excellent (I know you said they don't mean that much) we NEVER defaulted on anything ever, at this or our previous address, and Santander is happy with everything but my pay! I know it's like asking how long is a piece of string! Just thought you could tell me your professional view on this strategy. Haha!

Many Thanks

ACG

What has your broker said?
Do they not take shift allowance as part of their criteria or are you being singled out for some reason? If it is criteria, I think you need to look for a new lender, if it is just you then your broker needs to go and argue your case for you.

Z-dawg

nikkih72 wrote: »

we had this with Santander, there rate is very good, and they are very tight on who they lend to,
We eventually went with Natwest, they take everything into account, and not a bad rate

Yes, our broker said the same thing. NatWest was actually the second on the list when he was looking through the rates! We just need to decide if we're going to try and make this work, or start all over again! The biggest fear I have, is that by doing a full application with Santander, they did a hard-search or whatever that's called and, I wonder how much damage that caused, with regards to another mortgage application!

Z-dawg

ACG wrote: »

What has your broker said?
Do they not take shift allowance as part of their criteria or are you being singled out for some reason? If it is criteria, I think you need to look for a new lender, if it is just you then your broker needs to go and argue your case for you.

It's the criteria, unfortunately. We can get round the issue by paying off a loan, so we're over the affordability, but I was hoping to solve it without having to spend the money on the remainder of our loan. I wanted to spend it on the property! Oh crap!

ACG

If it is criteria, your broker has messed up a bit.
I can not see you getting them to accept your shift allowance personally. I would either find a new lender or find a way to make it work with Santander within criteria.

Z-dawg

ACG wrote: »

If it is criteria, your broker has messed up a bit.
I can not see you getting them to accept your shift allowance personally. I would either find a new lender or find a way to make it work with Santander within criteria.

Thanks! So if we are leaving my pay to be calculated as is, and get rid of £270/month worth of outgoing by settlening this loan We have , (which would put us way over affordability), do you think that would untwist Santander's knickers? Everything else is hunky-dory, but with them disregarding my shift allowance we were a tad under affordability!

Sorry if I'm using terminology wrong, I haven't a clue what half the things I'm saying is what they're really called! Haha!

haras_nosirrah

something is wrong there - have just looked at their online criteria and it says they accept 100% of permanent shift allowance

they are difficult with loans being repaid - they tend to go off what is showing your credit report and err on the side of not believing people will pay off their debts when they say they will (as no one can be forced to do so)

They should accept 100% of the shift allowance if the same amount every month according to the intermediary website. broker needs to argue your case or something else is going on

Income types

Primary income (100% of income) Secondary income (50% of income)
Gross basic Other
Permanent employment - basic salary
Fixed term contract (PAYE)
Short-term renewable
contract (PAYE)
Salary for a director of a
limited company
Net profit of a sole trader/ partnership
Director's dividends
Private/company pensions
and annuities
State pension
Employed in a family
business (1)

Bonus or commission where the amounts are regular and consistent (1)
Overtime where the amounts are regular and consistent (1)
Car allowance
London weighting/large town allowance
Permanent shift allowance
Indefinite mortgage subsidies or housing allowances
Child benefit (2)
Child tax credit (3)
Working tax credit (3)/
pension credit
Second job - where this is
ongoing and sustainable




Bonus, commission or overtime paid monthly where the amounts are regular but inconsistent
Annual bonus or commission
Other bonus, commission or overtime paid less frequently than monthly
Long-term mortgage subsidies or housing allowances
Indefinite state benefits (DWP/HMRC)
Investment income
Maintenance payments
Rental income
Fostering income

ACG

I have never used Santander before so I am not that up to speed with their processes.

Going off what haras has said then there is a little more to this I suspect. Your broker may not have made a mistake, it may be with Santander. But I would let your broker resolve it, thats what they are paid for.