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  • FIRST POST
    • Jmurphy94
    • By Jmurphy94 9th Aug 17, 4:33 PM
    • 2Posts
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    Jmurphy94
    Wage on a loan application
    • #1
    • 9th Aug 17, 4:33 PM
    Wage on a loan application 9th Aug 17 at 4:33 PM
    I am currently working away and receive a 10% salary uplift and a tax free living allowance which is paid in with my wages at the end of the month.

    Say my wage is normally £1,000 a month and my uplift and living allowance take this to £2,000 a month, would my wage be £12,000 a year or £24,000 a year?

    Could I put £24,000 a year on a loan application? Thank you!
    Last edited by Jmurphy94; 09-08-2017 at 4:59 PM.
Page 1
    • Tarambor
    • By Tarambor 9th Aug 17, 9:41 PM
    • 1,751 Posts
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    Tarambor
    • #2
    • 9th Aug 17, 9:41 PM
    • #2
    • 9th Aug 17, 9:41 PM
    The taxable pay is what you put down, it is what they'll go from. Things like bonuses, overtime and subsistence allowances aren't usually counted by lenders.
    • venison
    • By venison 9th Aug 17, 10:37 PM
    • 1,358 Posts
    • 1,445 Thanks
    venison
    • #3
    • 9th Aug 17, 10:37 PM
    • #3
    • 9th Aug 17, 10:37 PM
    That would be whatever your earn before tax that gives you £12k take home pay
    I am now a Board Guide on the Credit card board and the Loan board and Benefits board (But give me time to learn the ropes thanks).
    • Puddylove
    • By Puddylove 9th Aug 17, 11:25 PM
    • 455 Posts
    • 742 Thanks
    Puddylove
    • #4
    • 9th Aug 17, 11:25 PM
    • #4
    • 9th Aug 17, 11:25 PM
    Hi
    I'd suggest you put the minimum wage/salary you will definitely receive.
    That way, anything they do lend you really should be affordable for you.
    If you are having to make your income look higher, this could be a sign you are over stretching yourself.
    May we ask how much you want to borrow, and for what?
    • BrassicWoman
    • By BrassicWoman 10th Aug 17, 7:04 AM
    • 1,377 Posts
    • 5,838 Thanks
    BrassicWoman
    • #5
    • 10th Aug 17, 7:04 AM
    • #5
    • 10th Aug 17, 7:04 AM
    are you going to be working away for the entire duration of the loan?

    are the working away exenses used for things like extra rent and travel, so are not really spare money, or are they just a gift for flexing and you get bills paid on top of it?
    Downsized and mortgage free
    Dec 17 grocery challenge £89.65/ £120
    • Jmurphy94
    • By Jmurphy94 10th Aug 17, 11:50 AM
    • 2 Posts
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    Jmurphy94
    • #6
    • 10th Aug 17, 11:50 AM
    • #6
    • 10th Aug 17, 11:50 AM
    I'm borrowing 15-17k for a new car. I currently have a loan and I can afford the payments, I am planning to sell my current car for 10k, then use the top up on a loan to pay for the new car.

    It's not a matter of being able to afford the repayments as I can, I'm just wanting a low APR% approval by using a higher wage.

    And the extra money is for rent and basic living whilst I'm away, but I profit a lot after I have paid my bills.
    • BrassicWoman
    • By BrassicWoman 10th Aug 17, 1:46 PM
    • 1,377 Posts
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    BrassicWoman
    • #7
    • 10th Aug 17, 1:46 PM
    • #7
    • 10th Aug 17, 1:46 PM
    If it's for spending on rent, and you are spending it on rent, then it's not wages. So no, I think you cannot include it.
    Downsized and mortgage free
    Dec 17 grocery challenge £89.65/ £120
    • bargainbetty
    • By bargainbetty 10th Aug 17, 2:33 PM
    • 3,102 Posts
    • 7,142 Thanks
    bargainbetty
    • #8
    • 10th Aug 17, 2:33 PM
    • #8
    • 10th Aug 17, 2:33 PM
    Work out the actual sum you need to borrow, after you have sold your old car and paid off the loan on it.

    Your basic salary is all you can reasonably claim as income, although you may find there is a box to enter details of assured additional income. Please bear in mind that if you are aware that the payments will end prior to the completion of the loan, you should not include them - don't claim what you don't have.

    If the sum you want to borrow is more than 50% of your basic income, you may find it difficult to get a loan for the amount you seek, on any APR.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
    MFW - Joined May 2012, aiming to cut the mortgage by an extra two months every year. (Overpaid £3000 so far)
    , only 11 years to go.

    • AndyPix
    • By AndyPix 10th Aug 17, 2:36 PM
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    AndyPix
    • #9
    • 10th Aug 17, 2:36 PM
    • #9
    • 10th Aug 17, 2:36 PM
    Sorry - did you say you have a 12k salary and are buying a 17k car ??
    Running with scissors since 1978
    • Caz3121
    • By Caz3121 10th Aug 17, 4:18 PM
    • 10,864 Posts
    • 7,093 Thanks
    Caz3121
    Sorry - did you say you have a 12k salary and are buying a 17k car ??
    Originally posted by AndyPix
    I think it is a £25-£27k car with £10k from sale of existing car and loan on top!
    • Puddylove
    • By Puddylove 10th Aug 17, 9:08 PM
    • 455 Posts
    • 742 Thanks
    Puddylove
    I think it is a £25-£27k car with £10k from sale of existing car and loan on top!
    Originally posted by Caz3121
    No, we must have misunderstood - no one on a salary as low as £12k would borrow more than a year's income for a car - no one is that daft.
    And surely banks etc. Would never loan this multiple of a salary?

    OP - can you clarify for us?
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