Looking to buy my first property?

Jlawson118

After posting this original post earlier in the week, I've spoken to friends and family in regards to this idea to which all feel this would benefit me, and it's like I said in my post, I was looking to start this process early in the New Year anyway, so when a property is available that I like, I have the savings towards a deposit, why not? I know if I do agree to go ahead, it will be a stressful few months but it'll be one of those things that'll be worth it in the end! I had a viewing yesterday and the place seemed spot on. I'd like one more with family there.

The Issue I have - I recently cut down my hours at work:
But here is where I'm a little stuck now, where it comes to my income. I spoke to First Direct's mortgage team on Friday and declared all details required. I explained that my income falls just short of £24,000 per year on my 40 contracted hours, however due to my stress/health issues and family issues, I temporarily cut my hours down to 25 at the beginning of August, my bosses have been very understanding and supportive about the situation. I also took two weeks sick at the end of August and returned to work this Thursday. I'm working 30 hours this week and back up to 40 the following week which will be permanent.

But explaining this to First Direct was the complicated part. I explained with these various hours to deal with personal problems my yearly income will have gone down to approximately £21,000 - £22,000 for the year. Therefore my mortgage advisor quoted me with the information I'd earn £21,000 this year, and should I decide I do want this apartment in question, I need to provide my last One Month's wage slips (I get paid weekly). Whereas these slips state 25 hours, and two weeks are SSP.

However, my May, June & July wage slips all prove I've worked 40 hours per week, some weeks overtime anything over 40 (I know they don't count overtime). I've got wage slips from when I started the job all at 40.

If First Direct take my information for the last one month's slips, then my quote will more than likely drop. It's not an accurate statement of my income. My income goes into my First Direct account and can see over the past months I have earned a lot more than recently. The advisor even stated I didn't get very much last week, which I explained was SSP and I have now returned, steadily going back to my normal hours.

How can I deal with this?

Tiglet2

Just give them the payslips. Since you are paid weekly, it won't be long before you have worked another month and can give them more payslips showing an increase in income. They may query the drop in income but you've already explained it here and may have to go all through it again with them. As long as they're kept in the loop and you can produce payslips for previous and future weeks, they will probably still offer you a mortgage. They could be lending approximately £76,500 on an £85,000 purchase, i.e. 90% plus your deposit of £8,500. Since you have between £10-15,000, the lender could lend less and may be more amenable. You will obviously need to keep some money back for conveyancing fees, land registry fees, searches as well as some new furnishings.

Jlawson118

Tiglet2 wrote: »

Just give them the payslips. Since you are paid weekly, it won't be long before you have worked another month and can give them more payslips showing an increase in income. They may query the drop in income but you've already explained it here and may have to go all through it again with them. As long as they're kept in the loop and you can produce payslips for previous and future weeks, they will probably still offer you a mortgage. They could be lending approximately £76,500 on an £85,000 purchase, i.e. 90% plus your deposit of £8,500. Since you have between £10-15,000, the lender could lend less and may be more amenable. You will obviously need to keep some money back for conveyancing fees, land registry fees, searches as well as some new furnishings.

Thank you! I will do just that. I also did explain to First Direct that I am currently going through the interview stages of a new job to which they said was fine as long as I do keep them in the loop!

Do you think it would be in my favour if I wrote a statement in writing just to explain the circumstances within my supporting documents?