Partners earnings taken into consideration?

Legacy_user

Hi all

Just wanted some clarity on how lenders work out affordability. I’ve had a number of friends say they’ve had experiences of the second person not being officially on the mortgage but had their earnings still taken into consideration - is this true??

We are debating the idea of applying for a mortgage in just my name (various reasons) and although the affordability isn’t quite where it needs to be for what we want, we will of course buy whatever we can afford with whatever the lender will lend us.

Thanks

Thrugelmir

For earnings to be considered then a party needs to be an applicant on the mortgage. There's no avoiding this.

Try lenders online calculators to see what you could potentially borrow.

Address the issues that are impacting your partners credit file. Time heals as they say.

ACG

I do not think there are lenders who do this. Ultimately a Mortgage is a contract that requires at least one of the applicants to make payment in full. They are governed by the FCA to ensure they can afford the applicant(s) can afford the mortgage.

To take in an applicants income who is not legally required to make any payments seems like it would be against the lenders best interest and their regulatory requirements. Why would they lend you more than you can afford without having a legally enforceable contract on the other person?

I dont want to say it 100% cant be done, but I would be surprised.

System

Thanks, yes my thoughts are that this would be unusual too. I read everything in this forum quite closely so I did think it was bizarre. My neighbour (who isn’t on the mortgage) said she had to provide a letter from her employer to confirm her earnings when her husband bought the house. That was many years ago mind you.

haras_nosirrah

I imagine in your neighbours situation it was so she could show she was financially independent.

I had a case where buyer bought on his own but his 3 brothers would also be resident.

One was a uni so was counted as a dependent adult.
The other two were working and therefore were not counted as dependents

Their income wasn't used they just weren't counted against him on affordability And we had to provide payslips for the brothers to show they were covering their own expenses