Payrise / promotion mortgage

jaffa20

Hi all, i am due to get a payrise shortly and i am wondering if i apply for a mortgage, will my new gross income be taken into account?

Of course, my p60 is from my old position will have my old salary and i would need to wait a few months to have payslips with the new salary. I would be able to get a letter from HR outlining my new salary. I am just wondering how banks consider this? Perhaps i need to be on my new salary for several months before applying.

Moreover, this would only be for a small mortgage 70-90k. My current salary would cover the x3.5 new rules but obviously having a greater mortgage approval would give more choice when house hunting. I have savings of close to 5k by standing order and hope to save the remainder in coming months or get gift from parents.

To summarise, my main concern is if the bank do not like someone who has recently moved to a permanent position in new department even they were with same company and they were a permanent employee already on a lower position.

Thanks in advance,

miezekatze

I got a pay rise after getting approval in principle but before we took out the mortgage. I got a letter from my employer at the time to confirm this and handed it in when we found a house and were ready to go, no issue.

The_Morrigan

jaffa20 wrote: »

Hi all, i am due to get a payrise shortly and i am wondering if i apply for a mortgage, will my new gross income be taken into account?

Of course, my p60 is from my old position will have my old salary and i would need to wait a few months to have payslips with the new salary. I would be able to get a letter from HR outlining my new salary. I am just wondering how banks consider this? Perhaps i need to be on my new salary for several months before applying.

Moreover, this would only be for a small mortgage 70-90k. My current salary would cover the x3.5 new rules but obviously having a greater mortgage approval would give more choice when house hunting. I have savings of close to 5k by standing order and hope to save the remainder in coming months or get gift from parents.

To summarise, my main concern is if the bank do not like someone who has recently moved to a permanent position in new department even they were with same company and they were a permanent employee already on a lower position.

Thanks in advance,

I wouldn't be going near a bank until you have at least the 20% deposit in your account. You'll need funds in excess of the 20% mark to pay out all the associated costs and fees that come with getting a property.

Sit tight, get all your papers in order and let your savings grow.

jaffa20

The_Morrigan wrote: »

I wouldn't be going near a bank until you have at least the 20% deposit in your account. You'll need funds in excess of the 20% mark to pay out all the associated costs and fees that come with getting a property.

Sit tight, get all your papers in order and let your savings grow.

20% :eek: I am a first time buyer though so thought i wouldn't need so much savings. I understand i'll need a small amount to cover expenses like legal costs etc

Woshy

Any banks we applied with asked for a salary cert completed and stamped by HR with our current salaries on it. So if you get this it will show your updated salary.

The_Morrigan

jaffa20 wrote: »

20% :eek: I am a first time buyer though so thought i wouldn't need so much savings. I understand i'll need a small amount to cover expenses like legal costs etc

For the purchase price alone you'll need a minimum of 10% under the new rules. That is not factoring in if you get into a bidding war with someone and edge your price higher.

You then have valuations, surveys, legal costs, land registry charges, insurance, payment protection, fixtures/fittings like carpets/flooring/windows, furniture, appliances, everything that belongs in a kitchen (delph/pots and pans).....none of this is covered under a small amount.

When I bought I had over 25 - 30% saved to cover deposit and expenses. I got a gift from my parents to kit the place out. 5K is not nearly enough.

jaffa20

The_Morrigan wrote: »

For the purchase price alone you'll need a minimum of 10% under the new rules. That is not factoring in if you get into a bidding war with someone and edge your price higher.

You then have valuations, surveys, legal costs, land registry charges, insurance, payment protection, fixtures/fittings like carpets/flooring/windows, furniture, appliances, everything that belongs in a kitchen (delph/pots and pans).....none of this is covered under a small amount.

When I bought I had over 25 - 30% saved to cover deposit and expenses. I got a gift from my parents to kit the place out. 5K is not nearly enough.

I can see what you mean but once i have a mortgage, my repayments would be much less than what i pay in rent each month and would certainly have enough each month to furnish etc over time and save for unexpected costs. I would only need the essentials to survive. I'm putting everything i can into saving at the moment in the hope of speeding up the process.

The gift the bank would know about would just be the amount to make up the 10% i need which wouldn't be alot but i would have more to help in first few months to settle in and kit out the place. Thanks for the advice though, it's a case of head over heart and i see your point

sfla1517

I've just been approved for a small mortgage with AIB (80K). As answered above, the salary certificates will do to show your income, as long as the probation period is ticked as complete. However, the bank really wants to see regular savings and have very strict stress tests in place. Its not easy but hang in there, try to develop a good relationship with a mortgage advisor and do everything that they tell you :-) In fact, I suggest making an appointment with them now to discuss your application (any bank). They will put you on a path and let you know exactly what you need to do to get approved.