If you’re looking at a shared‑ownership home, the first thing lenders will ask about is the income of every owner. They call it “co‑owners income” and it works like a combined salary that shows how much the household can afford to borrow. It’s not a fancy term – it’s simply adding up the money each person brings in, then using that total to decide the mortgage size.
Why does it matter? Because the bigger the combined income, the more you can borrow, and the lower the monthly payment will feel. It also helps you qualify for better interest rates. So, before you start hunting for a property, get a clear picture of each person’s earnings, benefits, and any extra cash flow.
Most banks take the gross salary (the amount before tax) from each owner’s most recent payslip. If someone is self‑employed, they’ll look at the last two years of tax returns. Bonuses, commissions, and regular overtime can be added, but lenders usually cap them at 50 % to be safe.
Other income sources, like state benefits, rental income, or dividends, can also count. The key is that the money must be regular and verifiable. One‑off cash gifts or temporary work contracts usually won’t make the cut.
Once all the numbers are on the table, the lender adds them together and applies an affordability test. This test checks whether your combined income can cover the mortgage payment, council tax, utilities, and any other debts you have.
1. Include All Valid Income: Don’t leave out part‑time jobs, freelance gigs, or regular government benefits. Even a modest side hustle can push your total over a key threshold.
2. Reduce Debt Before Applying: High credit‑card balances lower the amount a lender will let you borrow. Pay down big debts a few months ahead of your application.
3. Refresh Your Payslips: Use the most recent payslips that show any recent raise or promotion. A higher salary line can make a noticeable difference.
4. Consider a Joint Savings Plan: Some lenders look at a joint savings account as a cushion. A healthy balance can reassure them that you have a backup plan.
5. Ask About Flexible Lenders: Not all banks have the same rules. Some specialist lenders are more willing to count irregular income, like freelance work, at a higher rate.
Remember, the goal isn’t to overstate earnings – it’s to present a realistic, full picture of the money you truly have to service the loan.
When you sit down with a mortgage advisor, bring every document you can: recent payslips, tax returns, benefit statements, and proof of any side‑income. The more evidence you have, the smoother the process will be.
Finally, keep an eye on how co‑owners income changes over time. If a partner gets a raise or starts a new part‑time job, you can ask the lender to re‑assess your borrowing power. That could open up more options for a better property or a lower interest rate.
Understanding co‑owners income is the first step toward a successful shared‑ownership purchase. By gathering all income sources, cleaning up debt, and working with a lender who fits your situation, you’ll turn a confusing calculation into a clear advantage. Happy house hunting!
