Gross v Net Income for mortgage

Claret1983

Hi All,

My partner and I are trying to obtain a mortgage at the moment. We had an agreement in principle from NatWest and on that basis put in an offer which has been accepted. However NatWest have now said that they will not be lending the funds needed.

The complication for us is my partner's salary. He works for an organisation akin to the World Bank which, as it's owned by governments, means that he is not liable to pay UK tax. HMRC are aware of this and have a division who deal with this. As a result his gross and his net income are exactly the same. We explained this to Natwest on 2 separate occasions and they agreed that they would take his net salary as the full amount he takes home and not an arbitrary net equivalent. However today they have said they will only take the gross amount. As a result we will not be able to borrow what we need to secure the house and will be speaking to other mortgage providers.

Has anyone had this situation previously and, if so, did you manage to find a lender who was willing to lend on the full salary?

Thanks in advance

ACG

You might find this becomes a little more complex because of a technicality.

Some lenders have a bit of criteria that says something along the lines of "must be a UK tax payer".

I am surprised Natwest said no to be honest, they would have been my first port of call.