Is it still worth submitting an application?

Craig_1988

Hi all,

Looking if anyone has experience with First Direct Offset mortgages. They specify you need a Sole salary of £50k - my base salary is just £1100 below that but in addition to that I have the following:
- Contractual Allowance of £3k per year/£250 per month. Received for the past 7 years and this alone takes me above £50k,
- On Target Bonus of 10% - can evidence I've received ~14-16% per year for the past 5 years
- Contractual Retention bonus of £7.5k per year I stay in the role, payable in January

That takes me up to around £65k and doesn't include discretionary overtime - around £500 per month.

Has anyone had experience and knows whether the £50k is a hard limit on the base salary or whether Contractual allowances will be considered?

For context my 1.52% fix with Halifax is up for renewal in Feb '23 and the loan amount would be £113k which would be fully Offset. Offset mortgages are rare and the only alternatives to FD charge a product/valuation/legal fees and require you to fix in - FD does none of those things. 

Many thanks

K_S

@craig_1988 I've no idea about FD criteria as its a direct-only lender but generally speaking as per the policies with most mainstream lenders that have a minimum income threshold, you would meet it. I would expect FD to follow the same approach.

For example this is how FD parent HSBC calculates income when it's with reference to a minimum income requirement

Craig_1988 said:

Hi all,

Looking if anyone has experience with First Direct Offset mortgages. They specify you need a Sole salary of £50k - my base salary is just £1100 below that but in addition to that I have the following:
- Contractual Allowance of £3k per year/£250 per month. Received for the past 7 years and this alone takes me above £50k,
- On Target Bonus of 10% - can evidence I've received ~14-16% per year for the past 5 years
- Contractual Retention bonus of £7.5k per year I stay in the role, payable in January

That takes me up to around £65k and doesn't include discretionary overtime - around £500 per month.

Has anyone had experience and knows whether the £50k is a hard limit on the base salary or whether Contractual allowances will be considered?

For context my 1.52% fix with Halifax is up for renewal in Feb '23 and the loan amount would be £113k which would be fully Offset. Offset mortgages are rare and the only alternatives to FD charge a product/valuation/legal fees and require you to fix in - FD does none of those things. 

Many thanks