Mortgage

dstrevens

My Daughter has applied for a mortgage but feel there might be an issue.

Property is for £173.5K she has £40K deposit.

She earns enough for the mortgage but is on a temporary assignment which has 14 months still to run, after which she would default back to her full time position but that is a grade lower and therefore less money, so using her wages for that roles income, she would not get the mortgage she needs.

Amy idea what income the mortgage company will use, the temporary one or the lesser one she would default back to in 14 months.

She has every intention of applying for jobs a grade higher than she is now but know that will not be considered.

Thanks for any help.

la531983

Had she told the mortgage company this? 

dstrevens

She is talking to a financial advisor, so the info is only with them at the moment. They asked if she was on a temporary contract and she advised yes.

kingstreet

If the lender is aware of the temporary nature of the current income they would usually disallow it,

If it was my case I would be using the substantive income and saying it was unaffordable and not proceeding. To use the higher income would leave the door open for a complaint and could be considered fraud if you don't clarify the position to the lender.

ACG

kingstreet said:

If the lender is aware of the temporary nature of the current income they would usually disallow it,

If it was my case I would be using the substantive income and saying it was unaffordable and not proceeding. To use the higher income would leave the door open for a complaint and could be considered fraud if you don't clarify the position to the lender.

Same here.