Underwriter not understanding salary

Parkbeeches31

Hello, 
We are currently in the process of buying our second home. 

We’ve been working with a mortgage broker who advised we can borrow £236,000 (this wasn’t the most we could borrow ).
My Salary - £18996
Husbands Salary - £34458

Application was sent to Halifax; they asked for some more pay slips and also a reference from my husbands work. All sent to them. 

Yesterday Halifax came back and said we could only borrow £193,000 because our salaries are incorrect. That Scott only earns £26404 and I earn £15,107.

We have letters and pay slips stating our wages. 

My husbands wage is broken down into: 
basic (£26404)
non pensionable (he doesn’t pay any % off this part of his salary) (£7,103)
Area allowance (£951)

All of the which is guarenteed pay every 4 weeks.

It’s now back with the broker to look at it all. I am so worried!!! 

Do you think that perhaps the underwriter has just made an error? 

Thank you! 

lookstraightahead

What what is the non pensionable bit for? Is it overtime etc?

theartfullodger

Any lender is at liberty to have such rules as they see fit. 

Talk to a whole-of-market broker, see what he recommends

Parkbeeches31

lookstraightahead said:

What what is the non pensionable bit for? Is it overtime etc?

No it’s basically part of his salary but it just doesn’t go towards his pension. That amount is included in his overall salary which is paid every month. 

grumiofoundation

What exactly is this non-pensionable pay for? Is it contractually guaranteed?

I would expect the issue will be that the underwriters won't be counting this money as 'salary' - since I don't see how an employer can get away without offering to pay pension contributions on this portion of salary. Therefore they will be counting it as something else (possibly incorrectly?) under a category that the lender doesn't accept?

Generally I believe non-pensionable pay is for things like expenses? 

You might want to post on the mortgage board where you get more accurate advice.

https://forums.moneysavingexpert.com/categories/mortgages-endowments

warwick2001

I think you need to spell out exactly what the non-pensionable bit is to the mortgage broker (if you haven't done already). Part of my salary is considered non-pensionable, its an 'unsociable hours' shift allowance as I do shift-work at weekends, nights etc. This part of my salary is not considered when I apply for loans, mortgages etc, even though it is a contractual agreement between me and my employers.

Best advice, explain everything to your mortgage broker, and hope that they can find an alternative lender who will consider the 'full' salary. But if its an 'add-on' to your husbands basic salary, you might find if difficult to get a lender as they might reckon it could be withdrawn at any time (even if it is contractual). Strange, but that's what they told me.

veryconfused20

When my partner and I were applying for our mortgage, despite a fixed and contractually guaranteed supplement in our wages to cover the unsociable hours that we work (that we have proof of receiving every month for the last X number of years), they would only take into account our absolute "basic" figure when calculating how much we could borrow. It sucks when you know it's as guaranteed as the rest of your salary but because it's listed separately it's not considered. 

K_S

warwick2001 said:

I think you need to spell out exactly what the non-pensionable bit is to the mortgage broker (if you haven't done already). Part of my salary is considered non-pensionable, its an 'unsociable hours' shift allowance as I do shift-work at weekends, nights etc. This part of my salary is not considered when I apply for loans, mortgages etc, even though it is a contractual agreement between me and my employers.

veryconfused20 said:

When my partner and I were applying for our mortgage, despite a fixed and contractually guaranteed supplement in our wages to cover the unsociable hours that we work (that we have proof of receiving every month for the last X number of years), they would only take into account our absolute "basic" figure when calculating how much we could borrow. It sucks when you know it's as guaranteed as the rest of your salary but because it's listed separately it's not considered. 

I just want to clarify here that (based on the description in the above posts) there are lenders who will consider these payments at 100% for affordability calculations. It's not a no from every single lender.

Aspiration

Best advice allow always given is a great broker who is whole of market.

Explain this upfront and provide all of the info. I sent a copy of our credit reports to the last one we used and all info so he could see it. Made it very easy once applying.

lookstraightahead

K_S said:

warwick2001 said:

I think you need to spell out exactly what the non-pensionable bit is to the mortgage broker (if you haven't done already). Part of my salary is considered non-pensionable, its an 'unsociable hours' shift allowance as I do shift-work at weekends, nights etc. This part of my salary is not considered when I apply for loans, mortgages etc, even though it is a contractual agreement between me and my employers.

veryconfused20 said:

When my partner and I were applying for our mortgage, despite a fixed and contractually guaranteed supplement in our wages to cover the unsociable hours that we work (that we have proof of receiving every month for the last X number of years), they would only take into account our absolute "basic" figure when calculating how much we could borrow. It sucks when you know it's as guaranteed as the rest of your salary but because it's listed separately it's not considered. 

I just want to clarify here that (based on the description in the above posts) there are lenders who will consider these payments at 100% for affordability calculations. It's not a no from every single lender.

Yep that's what I thought as ours did 

warwick2001

K_S said:

warwick2001 said:

I think you need to spell out exactly what the non-pensionable bit is to the mortgage broker (if you haven't done already). Part of my salary is considered non-pensionable, its an 'unsociable hours' shift allowance as I do shift-work at weekends, nights etc. This part of my salary is not considered when I apply for loans, mortgages etc, even though it is a contractual agreement between me and my employers.

veryconfused20 said:

When my partner and I were applying for our mortgage, despite a fixed and contractually guaranteed supplement in our wages to cover the unsociable hours that we work (that we have proof of receiving every month for the last X number of years), they would only take into account our absolute "basic" figure when calculating how much we could borrow. It sucks when you know it's as guaranteed as the rest of your salary but because it's listed separately it's not considered. 

I just want to clarify here that (based on the description in the above posts) there are lenders who will consider these payments at 100% for affordability calculations. It's not a no from every single lender.

Thats right, which is exactly why I wrote:

Best advice, explain everything to your mortgage broker, and hope that they can find an alternative lender who will consider the 'full' salary....et al....