THE BOY FLASH

Any IFA's/ Mortgage brokers out there?

Is it possible to use a P60 as evidence when working out how much money can be borrowed for a mortgage?

I work quite a lot of overtime each year, with guaranteed standby/callout payments (work for the local electricity board repairing faults), plus some bonus payments aswell.

My P60 earnings are quite alot more than my basic salary, and would enable me to borrow more money if this is indeed possible?

Cheers,

Flash.

p.s.

don't want to go down the route of 'self-certification' ,not my cup of tea thanks.

Andrew Timmins

Self certification for employed people is exactly aimed at your circumstances. You do actually earn the money but a large proportion of it isn't guaranteed.

Many lenders only take a proportion of your overtime/bonus payments into account so you end up being able to borrow less than you need/can afford.

P60 can be used to prove income, along with payslips and/or bank statements.

Some lenders don't ask for proof of income on their regular range of mortgages provided you have a large enough deposit, Northern Rock and Royal Bank of Scotland for example.

Why don't you want self cert?

DAC

my lender would take overtime as guaranteeed income, but my employer had to sign a letter to say it was guaranteed.

RichB

Alliance and Leicester allowed us to borrow more by showing bank statements and payslips. They took into account bonuses that were paid, overtime etc. They were extremely helpful in the branch and were happy to explore the boundaries of the rules to accomodate us.

THE BOY FLASH

Thanks for the advice & information.

Andrew, re: self certification, its just that I saw a programme on BBC II a few weeks ago and the self-cert way of getting a mortgage got a lot of bad press as it can actually be fraudulant to say you earn an exagerated income when you know you don't. Fraud can carry a custodial sentance for customer and broker alike.

IMO it can lead to a lot of problems further down the line, I know a lot of people use them but its not for me.

Cheers anyway for your info.

Flash.

Andrew Timmins

How is this relavant to your case?

If the lender or regulator wished to check up on your earnings your P60, payslips and bank statements would prove your true earnings. It isn't fraud if you're telling the truth! Having a self-cert mortgage doesn't make you a criminal what ever the BBC may tell you.

E-mail me if you want help working out how much you can borrow.

Some lenders don't ask how much you earn, only if you can afford to meet the payments. If a regular mortgage if awkward for you with the way your money is made up perhaps this would be suitable.


[Edited by Andrew Timmins - 12/15/2003 8:42:54 PM]