Main earner? We earn the same!?

GalDriver

Hi all, does anyone know how we stand with applying for a mortgage when we earn exactly the same wage? We are a hetrosexual couple [and before any of the eagerly PC of you take issue with that comment it's purely to illustrate that we are a couple, rather than just friends, and of opposite sex for relevance to my later comments] in our late 40s and will be looking for a mortgage shortly.

I've used the online mortgage calculators to get a rough idea of what we can expect to be offered but they always reduce the amount if it's a joint application. I know they do something like 5 times main earner and less times the other wage but surely the calculation should be worked out the same as if we were applying singly in the circumstances? We earn exactly the same, as we do the same job. One reason the female's wage is sometimes not used for the higher calculation, I believe, is because of the possibility of her breaking off from earning to start a family. I will NOT be taking time off to have and raise children (even IF the surgeon did a bad job!) We are virtually the same age, just 10 months apart, so we think they should consider us equally as if we were applying singly, don't you? Do you know how it works if friends, or even strangers, apply jointly? We're not married, and have no plans to be so would we be treated as if we weren't a couple anyway?

We will, obviously, be asking the mortgage companies these questions when the time comes but wondered if anyone has knowledge of how this works.

Any info/advice greatfully received. Thanks.

dunstonh

does anyone know how we stand with applying for a mortgage when we earn exactly the same wage?

No different to anyone with a different wage.

I've used the online mortgage calculators to get a rough idea of what we can expect to be offered but they always reduce the amount if it's a joint application.

Income mutliples are a rough guide only. When you get to see a mortgage broker you will find out that most lenders work on affordability rather than multiple.

dwsjarcmcd

Many lenders, well most actually will do a multiple of joint salary, so it doesn't really matter who earns the higher. It also doesn't matter what type of couple you are!

PasturesNew

The words mean nothing really, they need a phrase for "borrower1" and "borrower2" so main earner fits easiest.

GalDriver wrote: »

surely the calculation should be worked out the same as if we were applying singly

It generally never has been done like this.
It's always usually been a lesser multiple of joint than single.

herbiesjp

A stated above it make no difference on who makes up the couple.

Plenty lenders offer lower joint income multiples whilst others offer the same multiples high multiples be it a joint or single application

As dunston rightly says, there is more than one way of looking at this and affordability based lenders may also be an option for you.

Mortgage claculators may be good for some areas (i.e finding rates), but sometimes you need the knowledge behind the lenders criteria, to find out what deals you could actually be eligible for.

Best bet is to discuss your scenario in detail with a fee free whole of market adviser, and they should be able to give you an idea pretty quickly

GalDriver

Thanks all for your advice :T

Dan_Collins_2

Many years ago in the dark ages when bank managers played golf and shared a bottle of wisky with clients some lenders would not use the wife's income because it was the done thing to have children and give up work. For a fair few years this has not been the case and in 2007 it would be seen as non-pc. However in my experiance it is something that needs to be mentioned, not held against just discussed.

Most lenders now add in affordability, well they have to thanks to the FSA, one thing they did well. A few lenders are still giving 5X joint with a good score and income history. You will be fine!

GalDriver

Thanks Dan, I think we should be ok too and hope that, in this day and age, they consider the circumstances properly and not just have a 'company policy' of offering unequal multiples. You have all been very helpful. If we were 20 years younger and considering starting a family then I would expect the calculations to be different but as I would like to keep my wish list for my 50th birthday next year as it is, with a canoe on it and not have to change it to a buggy (!), we will be expecting equal treatment for our equal earning situation.

Thanks again all, this site is becoming invaluable to us for advice.