Mortgage question

Marcus3344

Good afternoon

I have a mortgage question.
When calculating how much a lender will offer, 4 1/2 times my salary.
My question is this, I have been employed for 3 months now, but have just been given a pay rise from 26K to 38K.
Will the lender calculate 4 1/2 times 26K or 38K, as I have payslips for the 26K but an employers letter confirming the pay rise to 38K??

Marcus

K_S

Marcus3344 said:

Good afternoon

I have a mortgage question.
When calculating how much a lender will offer, 4 1/2 times my salary.
My question is this, I have been employed for 3 months now, but have just been given a pay rise from 26K to 38K.
Will the lender calculate 4 1/2 times 26K or 38K, as I have payslips for the 26K but an employers letter confirming the pay rise to 38K??

Marcus

@marcus3344 4.5x is simply a ballpark max lending figure. Depending on the LTV, lender and product type, it can range from 4x-5.5x with mainstream lenders.

To answer your question about future payrise, it'll depend on the lender. Some lenders need to see it on a payslip, some will be happy to use the employer letter, some apply different policies based on how much the hike is, etc.

Have a play around with a couple of lender affordability calculators to see very very roughly how much you may be able to potentially borrow. It'll also give you a decent idea of what are the things that may affect your max borrowing.

https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator

https://www.santanderforintermediaries.co.uk/calculators-and-forms/affordability/

Rachelredwood16

Not quite the same, but I have recently gone from an Agency contract to a permanent contract with an increase in salary. I used a broker as I didn't want to go alone not knowing which lenders would give me an offer with just a contract, offer letter etc and I know both Halifax and Nationwide will consider you without any payslips amongst a few others. I had to provide my previous payslips just so they could prove I was working etc and then proof of my new job with new salary etc. I had an offer through from Nationwide no problem, but I actually pulled out of that purchase. We have now applied with Halifax on the new property and just waiting on the valuation to be completed on Friday. I hope this helps