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Overtime

ConsistentlyLost
ConsistentlyLost Posts: 85 Forumite
Sixth Anniversary 10 Posts
in Mortgages & endowments
Hey folks!

My question is are lenders taking overtime into consideration again? I think Nationwide are since introducing their Helping Hand mortgages a couple of weeks ago so I was wondering if others are following suit.

Also on the basis of my details below, what do you think my chances are of securing a mortgage at this current time?
Annual income - 16,895.76
Overtime - (Around) 200 per Month at present
Monthly Outgoings - (Around) 250
Credit - Very Good to Excellent
Deposit - 35,000
Property Value - 120k - 125k

Thanks again folks!

Comments

  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    @ConsistentlyLost Plenty of lenders will consider consistent overtime, though how much of it will be taken into account and what they define as consistent and sustainable will differ from lender to lender.
    Based on the limited info in your post, and assuming no/low debt, you are likely to max out at around 85-87k in borrowing giving you a budget of up to 122k or so.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • ConsistentlyLost
    ConsistentlyLost Posts: 85 Forumite
    Sixth Anniversary 10 Posts
    edited 10 May 2021 at 2:11PM
    Thank you K_S. How much of that figure you provided is on the basis of the overtime I'm doing at the moment?
    I know when I've used mortgage calculators they state guaranteed overtime/bonuses and my overtime is by no means guaranteed but it is fairly regular. I forgot to mention I'm a Ftb with a maxed out Help to Buy isa if that helps.

    Anyway thank you for the information, it's given me something to go on!
  • K_S
    K_S Posts: 6,908 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 10 May 2021 at 2:24PM
    @ConsistentlyLost The figure I've given is assuming an optimistic scenario that the overtime is consistent and can be evidenced. It's basically 4.5x your total income (basic + overtime).
    Some lenders will take the lowest of your last 3 monthly overtime figures as shown on your payslips (so if these are £50, £100 and £500, they'll only take £50/month into consideration), some will take the average of the last 3/6 months, some will want it to be shown on your last P60, etc. So how much of your overtime will be considered depends on how it actually shows on your payslips and the individual lender policy.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • ConsistentlyLost
    ConsistentlyLost Posts: 85 Forumite
    Sixth Anniversary 10 Posts
    Thanks again K_S, that's helped a lot moving forward!
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