Mortgage lenders 'will accept mixed incomes'

Date:Thursday 13th August 2009
Author: Max Freedman

People wishing to use a variety of incomes to secure a mortgage should be able to do so, according to a money expert.

But Guardian writer Virginia Wallis also noted that lenders prefer incomes to be steady and reliable.

Ones that are prone to fluctuation may not be accepted.

Ms Wallis gave the advice as she responded to a reader identified only as DN who asked about using mixed incomes to get a mortgage.

DN's pre-tax salary is £5,000, but more money also comes from a net dividend income on an ISA and a carer's allowance.

Ms Wallis said that the ISA income may not be considered steady enough for mortgage lenders and that capital from the fund might have to be used instead.

But she pointed out that the dividend income lost this way would be recouped in not needing to pay interest on the mortgage.

House prices in the UK were 10.7 per cent lower in June this year than they were in June 2008, according to recent figures from Communities and Local Government.