Boosting Income Multiples With Overtime

Buying a home for some people, no matter the amount of desire, might require a bit of planning over time, but the sooner the planning is identified and implemented, the closer you will be to doing what you want. “I wish I had known this when I was at school” were the words of an aspiring tenant2owner when discussing this topic. The thing is, today can always be the beginning of a new future. Increasing income is the most effective way to improve mortgage affordability, as lenders typically will lend 4.5x - 5.5x total annual income. Not all income is however, treated equally. Lenders need to trust that the money is sustainable (you can keep earning it) and provable (it is taxed and documented). We’re therefore going to talk about the jobs and income strategies that carry the most weight with UK lenders, along with the "rules" for getting them accepted, and this is the first of them. Before finding a new higher paying job (a strategy in itself), maximising income in your current role is an easier path because you already have a history there. Overtime - taking extra shifts, weekend work, or "bank" shifts (common in NHS/care). Lender View: Most lenders take an average of your last 3 months’ overtime or use your P60.

 The Rule: If it is "guaranteed" (in your contract), they often count 100%. If it is voluntary, they may only count 50–60% of it.