My husband and I would like to move house next year. We have about £120k in equity locked up in our property, which would form our deposit. We've had a mortgage for 14 years and have never defaulted on this.
Our earnings are complicated and I'd like to know which bits will be taken into consideration when the bank decides what to lend us.
My husband is a consultant doctor. He started his consultant job six months ago. His earnings will increase every year for the next ten years or so as he climbs the pay scale, which means he will be earning £20k more in ten years time.
He tops up his salary through occasional locum work at weekends. Some months he doesn't do extra work, other months he earns quite a lot of extra money. There is usually plenty of work available.
He also has the potential to do private work. This is something he is yet to explore, given that he has only recently become a consultant.
So basically, his basic consultant salary will increase by £20k over the next ten years and he will potentially double his earnings in private and locum work.
I have a part time job that brings home roughly £20k per year but I'm on a fixed term contract (2 years with likelihood of renewal).
We would like to move to a detached house but the prices in our area are staggering. There is no way we will get a mortgage that will cover this based on 3.5 times his basic earnings or based on 4 times our joint earnings if the other work is not taken into consideration.
What are our options for getting a mortgage based on his actual year on year earnings rather than his basic salary? Will a mortgage lender take account of the fact that he is at the bottom of the payscale and will move up one point each year?
TIA