Changes in circumstance before mortgage application (job and current account)

maurice28

Hi,

My wife and I are looking to move house this year, when we see a new home that we like the look of, so it could be any time really. We have a deposit of around £50k which comes from equity in our existing home (we are second-stepping) and looking at houses priced at £250k maximum. Our current combined income is just over £42k.

I just had a couple of questions:

1) My wife is a primary school teacher, and has 10 years continuous employment. She currently works one day per week, but is looking to switch jobs before September. She will likely move to two days a week, thus doubling her gross salary. If she gets a job offer in the next month or so, to start in September, are lenders normally happy with that (and to consider a new higher salary to come) if the employer provides an offer letter and contract?

2) We both maintain our own current accounts (Nationwide), into which our salaries are paid. We also have a joint account (Halifax) into which we pay money each month, and all our household bills come from this. I am tempted to switch this joint account to Natwest (for the £100 switching bonus, and cashback on direct debit bills which would be worth an extra £5 a month or so) but is switching current accounts before a mortgage application a bad idea?

Our current Halifax account has no overdraft, and we wouldn't be applying for one with Natwest either. Looking at mortgage rates, it is likely we would apply for a mortgage with Natwest too (currently with Britannia).

If anyone had any thoughts, that would be great!

PrettyKittyKat

I work in education and I will have new pay from September. We have just had a mortgage offer. I asked our broker whether my increase in salary from September would be beneficial to our applications. He said most lenders will take it in to account if it is due to start within 3 months, and of course can be evidenced (contract as you state). As it turned out we were able to get the mortgage level we require without using my increased income so I didn't need to look in to it any further. if you are going to need to include the increased wage it may be worth speaking to an independent financial adviser for advice on whether it could be used.

maurice28

PrettyKittyKat wrote: »

I work in education and I will have new pay from September. We have just had a mortgage offer. I asked our broker whether my increase in salary from September would be beneficial to our applications. He said most lenders will take it in to account if it is due to start within 3 months, and of course can be evidenced (contract as you state). As it turned out we were able to get the mortgage level we require without using my increased income so I didn't need to look in to it any further. if you are going to need to include the increased wage it may be worth speaking to an independent financial adviser for advice on whether it could be used.

Thank you, that's really helpful. Glad it all went through OK for you!