Hi all

Any mortgage specialists on here happy to give me some advice?

Basic story line is, I'm trying to get myself into a position to apply for a mortgage for myself. I work for the nhs so job is secure however my base earnings is £24,907 before any other extras are added on such as 25% unsocial hours, London weighting etc.

I've looked up on the calculators a mortgage on £24,907 gives me approx £130,000 which in London and surrounding areas will get me a dog kennel pretty much.

Do the mortgage companies allow your final pay slip as a guide on what you have earned instead or do they simply go by your base earnings.

Most go by base earnings but some companies will take the "variable income" element into consideration. I can give you the number of a very good FA if you want to call him for a chat? He'll tell you straight what's available, he's always managed to find me a good deal whatever my current circumstances 2011 Vogue SE Tdv8 FFRR

A proper mortgage broker, or financial advisor will have access to a much wider pool of products. There will be companies that could take that into account.

However at 130K, you are already at 5x multiples, I'm not sure it is wise to go even higher. Live can throw some interesting things in the way, generally at a 3x multiple with not many other fixed outgoings, one can deal with them. 5x won't leave much room, and going even high I'd feel like a weight on my shoulders. Hence there are much fewer of these products available now.

Last edited by Bl4ckD0g on 16th Dec 2020 1:45am. Edited 1 time in total

Agree on the multiples of income point. Have you considered Shared Ownership? As an NHS worker it’s worth considering. There’s a lot of negative press about it, but in principle it’s a very effective way of getting on to the home ownership ladder.

Shared ownership can reduce the deposit requirements but at the end of the day you still have a large outgoing each month in rent and mortgage payment. Situation may be different in London but up here in the village where I live there is a shared ownership property that has been on sale for two years and no one is prepared to take on the onerous burden.

Whichever way you go I would suggest fixing your new mortgage for as long as possible so that you are not immediately faced with a increase in interest rates and hopefully salary increases will eventually give you more headroom on your free income. Do your budgets carefully and honestly, do you have a partner? Do you have or want children? As others have stated five times income is incredibly risky as the repayments will be a large percentage of monthly income. If you have regular additional income that will not be used on the gearing base then this will help. Good luck with your investigations. 2012 tdv8 Westminster arrived Jan 19 gone Dec 23

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If it ever comes on line the "First Homes Programme" might be an option for you

https://www.themortgagehut.co.uk/expert-ar...ge-schemes 2011 TDV8 Vogue SE

I would steer clear of First Homes. It’s a ruse thought up by a political party spad and all it will do is push up the prices on the rest of the scheme. Just ask yourself who sets the initial price from which the 30% discount is taken. Here’s a clue, it’s not an independent valuer.

SO can be difficult in rural areas because they are what’s called exception sites and only available to people with a local connection. If it’s in an urban area, you should be fine. There is an affordability test to make sure you can afford it.