Whilst I understand that you have worked all the numbers and deemed that the mortgage to be affordable, lenders will assess the case differently, as each one apply’s varying affordability models and stress tests to ensure that a borrower can continue to make payments and meet the cost of living.
Lenders typically will have to consider your current income on the reduced as pay as that will not change for the next 4 years, which means that you’ll need to be able to support the mortgage for the next 4 years on reduced earnings and that is a significant amount of time as far as they are concerned.
The employee share saving scheme you mentioned will mature in 2014 but if you sell the shares, it would provide capital not income, though you could use the funds to reduce the mortgage balance.
However, I would reiterate that every lender has a slightly different affordability model and apply different income multiples, I.e some lenders will radically reduce the loan you can borrow if you have children, while others will take a view or apply a more relaxed model. Most of the banks don’t have any flexibility in their underwriting process, you either ‘pass’ or you dont. End of story.
However we do have strong relationships with lenders who manually underwrite, and can therefore judge an individual case on its merits, and I think it may well be this type of lender who would look more sympathetically at your case.
It would be worth speaking to us before making a final decision, to go through the figures in detail and see exactly what we can / can’t do. If you’d like to do so please call us on 020 4519 5101 to discuss your situation further.
