Company Car and Bonus

Cantthinkstraight2012

Hi all,

Just wondering really.

I have a basic salary of £30k. I have a company car which comes with private fuel benefit, I think the BIK works out at about £8k.

Does this get taken into consideration when applying for a mortgage?

For example I don't have any car travel costs/maintenance/insurance/tax etc due to the above.

Also, does any part of your bonus get taken into consideration?

Thanks in advance for any replies.

harvey115

It all depends on the Lender, as lenders have their own way of calculating affordability. So it depends which lender you choose to go with.

First of, if yours is a straight forward case i.e. permanent job, good credit history and good deposit. You should be fine to go direct. However You should seek advise from a broker.

A salary multiple of 4.5 can be considered as your borrowing power, so if you are thinking of borrowing around the figure of around £135K you should be okay given that you do not have too many commitments and debt.

If you are worried, you should seek a broker's advise

Thrugelmir

Cantthinkstraight2012 wrote: »

Does this get taken into consideration when applying for a mortgage?

For example I don't have any car travel costs/maintenance/insurance/tax etc due to the above.

Positively or negatively?

The BIK reduces your tax code and therefore your tax home pay. So in a sense you are paying for the use of the car.

bigadaj

How many private miles do you do, you need to be doing serious mileage for the saving in petrol to outweigh the tax you are paying.

Cantthinkstraight2012

Thanks for the replies. Unfortunately I don't have an option regarding the car, fuel etc there is no car allowance option.

The mortgage will be a joint request as my wife will be included who earns about £26k.

My question I suppose was does the provider factor x percentage from company car or bonus when decided how much we can borrow.

10% deposit, good credit history.

Simon_gloster

The MDF option has more flexibility than, lets say solid oak or pine. Go the extra mile and make the unit durable.

Ximian

Simon_gloster wrote: »

The MDF option has more flexibility than, lets say solid oak or pine. Go the extra mile and make the unit durable.

But also susceptible to water damage. Hope the OP finds this unrelated post useful

Cantthinkstraight2012

Not too sure that post was in the right section!

Cantthinkstraight2012

Ha ha fan of pine myself.

bigadaj

Cantthinkstraight2012 wrote: »

Thanks for the replies. Unfortunately I don't have an option regarding the car, fuel etc there is no car allowance option.

The mortgage will be a joint request as my wife will be included who earns about £26k.

My question I suppose was does the provider factor x percentage from company car or bonus when decided how much we can borrow.

10% deposit, good credit history.

If there is no cash equivalent then it makes it difficult to include, if the bonus is regular and consistent some lenders may include some or all of it.

10% deposit is pretty much a minimum now, would give better deals if this could be increased.

In relation to company car fuel, many firms will allow you to pay the cost of fuel back at the end of the tax year if this is less than the tax you are paying, shouldn't take too long to work out if you deduct business mileage from total mileage and then multiply by 12p or similar realistic amount.