Backdated overtime - mortgage applications

whirrel33

Hello All

So I get guaranteed shift allowance/overtime which is paid to me every month.
If my employer was to agree to do it, my idea was to not receive this shift allowance/overtime money for 3 months (whilst still working it) and then get it paid over the subsequent 3 months, bumping up my monthly income for when I apply for a mortgage.

My question is, is that considering fraud?

Thanks

kingstreet

You want to get a mortgage you can't actually demonstrate you can afford without skullduggery?

You do realise some lenders lend more than others and mortgage fraud (yes, obtaining a money transfer by deception) seems a drastic step compared to asking a mortgage broker to find the right lender for you?

whirrel33

Consistently, 60%+ of my income is disposable, so making payments is not an issue.
But as far as I am aware the main factor they take into account is your income, not your disposable income.. please correct me if I am wrong.

I thought it was capped at 5 times your salary.

csgohan4

whirrel33 wrote: »

Hello All

So I get guaranteed shift allowance/overtime which is paid to me every month.
If my employer was to agree to do it, my idea was to not receive this shift allowance/overtime money for 3 months (whilst still working it) and then get it paid over the subsequent 3 months, bumping up my monthly income for when I apply for a mortgage.

My question is, is that considering fraud?

Thanks

A lot of lenders will ask for your p60 so no amount of fiddling your income will work.


Lenders stress test your affordability and often add +5% interest rates to ensure you can afford a mortgage. It's no just about the mortgage payments now.


Mortgage fraud must not be done lightly, you will risk being black listed for along long time from being able to get a mortgage.


http://www.nhunter.co.uk/

kingstreet

whirrel33 wrote: »

Consistently, 60%+ of my income is disposable, so making payments is not an issue.
But as far as I am aware the main factor they take into account is your income, not your disposable income.. please correct me if I am wrong.

I thought it was capped at 5 times your salary.

Yes. That may be the case.

However, lenders treat overtime and shift allowance differently. Some might treat it as basic and use 100% while others might use only 50% and treat it only as regular.

As I said, why not consult a broker before embarking on an illegal action, which might be totally unnecessary anyway...?

whirrel33

Understood, thank you very much for the advice!
I will be getting in touch with a mortgage broker first thing tomorrow.

Thrugelmir

whirrel33 wrote: »

I thought it was capped at 5 times your salary.

Since the Mortgage Market Review lenders have moved away from simplistic lending models. Affordability factors are combined with the lenders own internal policies to determine maximum loan size.

Attempting to inflate income is double edged. Downside is akin to picking up a shovel and digging downwards. At any point in time the soil may simply fall down on top of you. Being overly optimistic is foolish when taking on such a long term committment.