What size of mortgage could I expect to be offered? (1st time buyer)

Malky82

I am paid both a salary and a daily offshore rate, bringing my income to about 50k pa. However, the salary is only 24k and the offshore days are not gauranteed in my contract (although even on a very quiet year, the least I would earn is about 40k). Does anyone know if a lender would just go by the salary? Also, I'm involved in a project that is going to boost my income to 75-90k for the next 2 years, is this something a lender would take into account (the extra all comes from daily offshore rate)?

Many thanks

SerenaGoode

I think you really need to talk to a mortgage broker as different lenders will deal very differently with this. I have a vaguely similar situation, though the salary is a higher proportion. On a recent remortgage I was allowed 4x the salary, but only about 2x the additional income. But other lenders may offer better terms than that.

A broker will be able to point you in the right direction for the best deal.

Conrad

Some lenders will include non guaranteed elements, but in the end it comes down to common sense and a judgement as to whether the 'responsible lending' test is passed.

They could ask for a reference and payslips to determine the sustainability. Note some lenders such as IF can use a simple gross income figure without a breakdown but this is still down to underwriter discresion.

I am assuming the income is all paid in sterling btw.

As for future income, no this cant be included unless it is imminent and fully confirmed by your employer.
Vague assurances will not suffice because if you got into arrears you might argue the lender knew nothing was guaranteed so it was tough but you had every right to be in arrears. A repossession hearing would prejudiced by such irresponsible lending decisions.

An AGREEMENT IN PRINCIPLE will be pretty meaningless in your case as the AIP will be based on crude inputs, You need an underwriter to fully assess your case up front.

Good luck