Can lenders consider min wage increase as a pay rise?

cjv

If your pay slips show you are paid minimum wage (hourly rate) can you essentially say you will get a pay rise in April for affordability?

Thrugelmir

Lenders assess affordability at the point of application. Any number of factors could change by next April.

cjv

Makes sense, I have read that you can have a letter from an employer to prove you will receive a pay rise in the future.

I was curious if a letter from the chancellor would also suffice.

Samsung_Note2

cjv wrote: »

Makes sense, I have read that you can have a letter from an employer to prove you will receive a pay rise in the future.

I was curious if a letter from the chancellor would also suffice.

I doubt he would be writing as letters lol

cjv

Samsung_Note2 wrote: »

I doubt he would be writing as letters lol

Indeed, that part was a joke

It was a serious question though, as I am paid minimum wage but work long hours so the increase in April works out as quite a large amount of extra income over a year. It is a shame it can not be taken into account as a future pay rise.

LRmortgage

There are some lenders that will take a future pay rise into account, usually up to 3 months in advance.

Could your work give you a letter in say January, confirming that your salary will be increasing in April by xxx per hour / week/ annum?

Samsung_Note2

cjv wrote: »

Indeed, that part was a joke .

:eek: Oh sugar...if a chap from the Daily Mail arrives on your doorstep with allegations of a lurid affair with a well known person named above...i might have read more into your post than expected.:eek:

:D

Lotak

cjv wrote: »

If your pay slips show you are paid minimum wage (hourly rate) can you essentially say you will get a pay rise in April for affordability?

Generally, lenders will ignore any future increases in earnings, even if guaranteed.

amnblog

A change in the minimum wage does not ensure that any employer will comply.

Written confirmation, pay slips, bank statements may all be required for a Lender to consider a higher income.