Working hours for mortgage application

brianapple

We are looking at applying for a mortgage for first time. My partner is on a 20 hour contract but always does at least 45 hours but has also been on mat leave since February, her wages show that she has worked 45 hours every week right up until she went on mat leave. 

Can anyone tell me how lenders are likely to view this situation? She will return to her 20 hour contract but is likely to still do the 45 every week when returning after mat leave

ACG

The lender will likely ask for a letter from the employer to confirm when she will return and on what terms, so chances are they are going to use the 20 hours. 

housebuyer143

As above, if she has not yet confirmed a return to work date, the lender may choose not to lend on her income at all. Overtime is normally taken into account using the last 3 months payslips or something like that, so they will not take it into account if she has not done it since Feb. 

ACG

Just a thought but if your REALLLLY need the higher income, there might be a couple of building societies who will take a view on it with payslips, letter form employer etc. Although it is 50/50 at best as a lot of people reduce hours after a child is born. 

One for a broker though if you want to use more than the 20 hours. 

K_S

brianapple said:

We are looking at applying for a mortgage for first time. My partner is on a 20 hour contract but always does at least 45 hours but has also been on mat leave since February, her wages show that she has worked 45 hours every week right up until she went on mat leave. 

Can anyone tell me how lenders are likely to view this situation? She will return to her 20 hour contract but is likely to still do the 45 every week when returning after mat leave

@brianapple As she's returning after mat leave to her 20hr guaranteed contract, it should be fairly straightforward to get the lender to consider that part of the income.

With respect to the OT, if her pre-mat P60/s reflects the higher income, there might be lenders willing to take a view on it and consider a % of the OT.

Do keep in mind that the lender will also factor in future childcare costs/arrangements when calculating affordability.