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Anyone know of a mortgage lender who will take overtime into account?

16 replies

becksmummy · 14/05/2007 13:58

Hi, we were wanting to look at moving house, and we wouldnt actually need to lend any more than we already have on our current mortgage

The problem is dh has changed jobs and is only contracted for part time but works regular overtime up to full time hours every week. I have spoken to current mortgage lender but even though dont want to increase our mortgage they wont take any overtime into account until he has been there over a year!

Does anyone know of a mortgage lender that will take overtime into account or do we have to wait until next year??

OP posts:
lulumama · 14/05/2007 13:58

do a self cert mortgage

see an IFA , they are a good place to start for good mortgage deals

PinkChick · 14/05/2007 13:59

i know a good financial adviser that can sort you out with a mortgage based upon affordability or self cert(you being a cm could give them an estimate of you wages), hes in teesside but am sure lots could be done over phone, if not just advice?

KezzaG · 14/05/2007 14:00

you could ask your dh's company what they would put as a reference as a salary. If it is guaranteed overtime they might confirm this to the lender and then it could be included.

BigGitDad · 14/05/2007 23:32

If you are putting down at least 25% deposit some high street mortgage companies will fast track your mortgage application which means you will not have to prove income. This means on the application form you can put your whole salary down. This means you can get a high street mortgage rate. If you go self cert it will cost you more.
As someone said earlier, see an IFA.

MrsApron · 14/05/2007 23:35

Standard Life bank take 50% of it if it is not guaranteed. St least they used to.

bilblio · 14/05/2007 23:53

My basis wage is about £5k less than my actual wage because of overtime, unsociable hours etc. and I've just renegotiated with the Halifax. The mortgage advisor there said they've had to relax their rules because so many people were struggling to get mortgages.

When we originally took the mortgage out a couple of years ago they wouldn't consider the extra pay I get so we went through an Indepentant Mortgage Adviser who sorted it all out for us.

I have been in my job for a couple of years though so had payslips to prove I wasn't making it up.
I'd recommend seeing an Independent Mortgage Advisor to anyone though, we had a lovely one who made our very complicated financial position an absolute breeze, as well as sorting out and advising us on all the other problems that cropped up with the house move too.

BigGitDad · 14/05/2007 23:56

bilblio makes a good point about using mortgage lenders directly. Often they have to follow rules and lack alot of flexibilty, that is why you should use a broker who can do the work for you.

MrsApron · 14/05/2007 23:59

Are you an IFA then BGD? It depends on the savvy of the customer ime. I have dealt with a lot of v v dubious IFas.

Self cert is not always more expensive either. With 25% equity the mort co is in a win win situation if they reposses.

BigGitDad · 15/05/2007 00:03

Yes I am. Sorry to hear about your experiences in the past. I guess the thing is to ask around and see who can recommend one to you. Word of mouth is the best advertisment there is.
You are right, there are some good self cert deals about but generally fast tracking with a mainstream lender will be cheaper. With my clients I generally look to fast track then self cert if the first option is not available.

MrsApron · 15/05/2007 00:21

Dealt with as in I have worked in lending for various big lenders. Are you with Charcoal? They tend to get some pretty swift treatment iirc.

becksmummy · 15/05/2007 14:41

Wow thanks for all your advice, looks like an IFA might be the thing to do!

We will only need to lend about 60% of the purchase price as we have quite a bit of equity so we are pretty low risk in my opinion but when our current lender (nationwide bs) wouldnt do it I didnt think anyone would?

Thanks again you have been a big help!!!!!!

OP posts:
becksmummy · 15/05/2007 14:42

sorry another quick question - is an IFA expensive???

OP posts:
bilblio · 15/05/2007 15:15

The one I used cost £250, but the mortgage deal she found us also included a "gift" of £250 for taking the mortgage out with them so they cancelled each other out which was helpful. She also got paid by the mortgage lender.

We did originally see another IFA through the estate agent. He was free and just took the cut from the mortgage provider, but he wasn't very independent as he would only recommend from about 5 providers. (Obviously the ones who gave him the biggest cut.) We had one meeting with him decided we didn't like him, didn't like his deals so found someone else.

As BGD says try to get a recommendation from someone, it doesn't even need to be someone near you, we never met our IFA even though she was relatively close by. We did everything over the phone and by post.

LilyLoo · 15/05/2007 21:03

becksmummy my dp an independant mortgage advisor you can email him on [email protected]. He can help you get something suitable.

LilyLoo · 15/05/2007 21:04

ps he doesn't charge a fee in answer to expense question. Hope that helps it's a nightmare isn't it.

BigGitDad · 15/05/2007 23:10

MrsApron, sorry to take so long to get back to you, my bed was calling me after 12.15am! I could not believe how many people were on here at that time of the morning!
To answer your question, no I am not with Charcoal, I work independently of any organisation like that, I used to be a company representative years ago and hated the pressure to sell put on you by management. I am self employed and work for myself, although I do belong to a network but they just do my compliance for me. However for my mortgages I use a number of mortgage clubs which allow you to get enhanced procuration fees.

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