New Mortgage - part time hours

buba2006

hi there,
I was wondering if anyone has any experience in getting a mortgage on part time wages.

Here's the background, originally I purchaed my house when i was working full time since then i have changed to part time. I never notified my lender as i was keeping up with my repayments. Now i'd like to move and buy again. Do lenders lend to part time earners?

In a perfect world (me getting my asking price) I'd like to borrow 44k for a 100k house. Is this possible??? Am i kidding myself???

Any advice would be appreciated.

Cheers

silvercar

If you are on a permenant contract you should be able to get the usual multiples of salary. Of course the fact that you are working part time will mean the multiples will be based on your part time salary.

Tiddler_2

Lenders base their decision on earnings and affordability, not what hours you work.

What income do you have? Do you receive any tax credits?

space_rider

I am part time and got a mortgage with abbey 2007 which was based on affordability. They also took tax credit into consideration. My tax credits are reducing as 1 child will be going to uni soon and I have another one who is 16. I would be very careful as if you can`t increase your working hours you will have a shortfall in income. Thankfully my company is expanding so I can have all the hours I need. I increased my hours last year in anticipation of my daughter going to uni so that I wouldn`t have a drop in income.

space_rider

Forgot to say that a friend of mine with same circumstances to me also got a mortgage from Abbey beginning of May.

Ian_Griffiths_Halifax

As Tiddle says, it's not the number of house you work, it's your income that matters. If you work 16 hours a week for £40k a year you would be able to get a bigger mortgage than 60 hours a week including guaranteed overtime for £30k a year.

Working Families Tax Credits, Child Tax Credits and a number of other benefits are allowable depending on the lender. However, if you have any other outgoings for debts such as Credit/Store Cards or Loans they will usually take 5% of any Credit Card balances eg £2000 X 5% = £100 per month (regardless of what you actually pay) and your monthly loan payments, off your income while doing an affordability test.

If you go to a lender who uses Income Multiples rather than an Affordability Test, most will multiply the monthly Credit Card and Loan payments by 12 and take this off your salary before doing the Income Multiple.