Subbie Tip #6 – Are You Considering Everything For Your Household Income?
The amount a lender will advance for your mortgage depends on what you earn; as a CIS Subcontractor, you could be forgiven for thinking that’s simply based on your Gross CIS Income but, in reality, there are many other forms of income that many lenders will be happy to take into account as part of your calculation of ‘household income’ such as:
Your partner’s income, whether they’re employed or self-employed
Income from a relative, even if they don’t plan to live with you
Benefit income
Bursary income
Income from rental property
These are just a few that I come across regularly but there are many more; I could probably write pages on this, but everyone’s circumstances are different which is why it’s important for me, as a Broker, to talk through the details with each applicant to find the right solutions for them.
However; there are two main alternative income sources that are most commonly overlooked by my clients so let’s briefly look at those;
The first is Partner’s income. Many of my Clients disregard this as being too small and not worth the extra time and paperwork to evidence. This is a mistake for two reasons; firstly, because if you don’t include it the mortgage lender may view your partner as a financial dependent, particularly if they are named as a second borrower and this could reduce the maximum loan amount considerably, but also because, even a small amount of income from your partner, can increase the maximum mortgage by a lot more than you might think.
The second possibility often overlooked is using a relative’s income to support your application; this can make a massive difference to how much you can borrow. It is important to remember that not all lenders allow income from a ‘joint’ borrower who doesn’t live with you to be taken into account, but there are many that do and I’ve seen this work really well where a family member just wants to help out or, in some cases, even own part of the property as an investment.
It goes without saying that it’s important not to over commit yourself to a mortgage you can’t afford but it is equally important to maximise your opportunities to get the most appropriate loan amount that you can so if you want to see how that might apply to you, I’d love to help. Call me today on 08000 306705 or drop me an email to: david@cismortgage.co.uk
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE