anntionette
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And Im trying to figure out how the bank would treat my untaxed or undeclared income for mortgage purposes.
With contempt.
You can avoid this by declaring this income and paying the taxes. Then you're sorted and you can use this income in your application.
You wouldn't need to be in the PAYE job for a year - being permanent and past probation (usually 6 months) should be enough. I don't fully follow your question about exceptions but hopefully this answers it: Every bank has a quota of exceptions to the 3.5 times income limit - up to 20% of total mortgage lending for first time buyers, and 10% of total lending for non-first time buyers. How far above 3.5 times incomes any individual bank will go varies quite a bit, due to the different treatment of numerous parts of the assessment (e.g. ages/maximum term, other loans, childcare, pension contributions, bonuses, etc.). Some banks have absolute upper limits of, say, 4 times incomes or 4.5 times incomes, but this is the type of policy that could change at any time, so it wouldn't be too useful to list them here.
The most important thing to keep in mind is timing: the quota of exceptions runs from January to December each year, but the banks generally run out after a few months and stop offering them (none are available right now, for example). This means that if you really need an exception, you should try to apply as early in the year as possible (or very late in the year, as some banks start issuing exception approvals in November or December, on the understanding that the mortgage won't actually be drawn down until the following year.[/QUOTE
Amazng information Dave, Thank you so much!
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