Any mortgage lenders that use 100% overtime

TweetyUK

Hi everyone.. Does anyone know if any mortgage lenders will use 100% overtime towards affordability at the moment? I have 43k already and just need 22k more towards a 35% share of a new build shared ownership property but am struggling to raise this on my basic wage yet I do plenty of overtime each month. 

K_S

@tweetyuk To be able to potentially use 100% OT currently will require a long track record and relatively consistent amounts. Does this overtime income show at a 22k annualised level on your last P60 and last 12 months payslips?

TweetyUK

Hi k_s.. I don't earn 22k, that's the amount of mortgage I need towards the 35% share, the rest I have cash from a house sale. I earn just shy of 10k basic but have earned roughly 5k overtime on top of that, each year for about 3 years now. 

CSL0183

Most lenders will include regular overtime yes. You would generally send them 3-6 months worth of pay statements proving
that it was regular. 

K_S

TweetyUK said:

Hi k_s.. I don't earn 22k, that's the amount of mortgage I need towards the 35% share, the rest I have cash from a house sale. I earn just shy of 10k basic but have earned roughly 5k overtime on top of that, each year for about 3 years now. 

@TweetyUK If you have a record of consistently earning 5k overtime over the last 3 years, there's a strong possibility of it being considered at 100% by a few lenders, though the number is a lot lower post covid due to lenders temporarily adopting a very conservative approach to any form of variable pay.

On top of that, since the lender needs to offer Shared Ownership products as well, the pool of available lenders shrinks further. When it's time, I would recommend getting in touch with a broker to get a realistic idea of your budget. Good luck!

TweetyUK

Thanks for your replies. 
I have just been through a mortgage broker and paid £500 to him after the application went in, got a mortgage in principle but been turned down anyway after 6 weeks stating they will only use 50% of overtime, all this after I'd been charged £500. I just wanted any names of any lenders so I could approach them direct. 

Rachel*

TweetyUK said:

Thanks for your replies. 
I have just been through a mortgage broker and paid £500 to him after the application went in, got a mortgage in principle but been turned down anyway after 6 weeks stating they will only use 50% of overtime, all this after I'd been charged £500. I just wanted any names of any lenders so I could approach them direct. 

Your mortgage broker should be checking other lenders for you. The fee you pay them is for them to try and secure you a mortgage, not just check one lender then give up. 

csgohan4

TweetyUK said:

Thanks for your replies. 
I have just been through a mortgage broker and paid £500 to him after the application went in, got a mortgage in principle but been turned down anyway after 6 weeks stating they will only use 50% of overtime, all this after I'd been charged £500. I just wanted any names of any lenders so I could approach them direct. 

personal preference, but I use brokers who charge only on mortgage Offer only, protects myself and I know they will have my interest with an incentive to finding an offer, compared to a conveyor belt broker

K_S

TweetyUK said:

Thanks for your replies. 
I have just been through a mortgage broker and paid £500 to him after the application went in, got a mortgage in principle but been turned down anyway after 6 weeks stating they will only use 50% of overtime, all this after I'd been charged £500. I just wanted any names of any lenders so I could approach them direct. 

@tweetyuk Unfortunately, whether lenders will see overtime as "consistent" is often subject to underwriters' discretion, especially so post covid. So it could be one of those cases where the broker placed it hoping the lender would see it as consistent enough to take it at 100%, but it didn't work out. Or the lender tightened underwriting standards, etc.

Having said that, I would have expected the broker to refund at least a portion of the fee when they gave up on it. Long ago when I used to work at a firm which charged on application, if the application was declined and we couldn't place the client anywhere else, a full refund was given.

TweetyUK

Yeah I get what you're saying. Just seems odd to me that I gave them all information they needed, got a mortgage in principle, put in the application, hence me paying £500 yet still didn't get it. And it seems like my mortgage advisor can't help me any further. I had a mortgage before for 12 years until August on the same wages for 71k,the only thing different now is I only need 22k and also the rent payable for shared ownership. I've looked online at my old mortgage company and they are not taking any new applications at the mo, so they're not even an option. I am devastated that it looks like I can't have my new dream house 🏡 

[Deleted User]

There are plenty of lenders taking 100% of overtime.  Maybe they need 3 months payslips, maybe 6 months, in some cases they will average 2 years p60's to get an income but there are still plenty of options. 

We cant name individual lenders as we don't know your full circumstances but I can say that i have placed enough shared ownership cases recently with 100% overtime being used to know you have options out there.  

 Personally I would go back to the original broker and annoy them until you get a mortgage or a reason for why they cant help you.   Paying them £500 to not even try find a new lender seems a bit much.