What expenses/allowances can I include on mortgage application?

Arbee

I work as a (non-self-employed) IT contractor. As well as my basic salary I get the following allowances because I am not working at our offices. They are not guaranteed, but I have been getting them for the last 2 years, and I don't think I'll be going back to the office any time soon (although it's a possibility). Note that it is the same difference from my house to the company offices as it is from my house to work, so in my head the mileage allowance is a bonus, not expenses

Mileage allowance: 40p/mile (15K miles per year)
Lunch allowance: £5/day
Travel Allowance: £10/day (taxable)

My wife is a doctor, and gets the following allowance. Hers is guaranteed for a year, as it is contractual (and she starts a new job every year), but in practice she will be getting it until she is a consultant (which is a fair few years away!!)

Unsociable hours banding: 50% (taxable) of salary.

Soooo, my question is: Which of these (if any) can I include on a mortgage application (particularly HSBC and Britannia)? We have 2 years of payslips for each to use as evidence. I will be going into branch for HSBC, so will discuss this with them, but Britannia would be online only, so any advice would be appreciated Also, any pitfalls, etc.

System

Are you working at one particular location? If so then you will not be entitled to the mileage allowance once you hit the 2 year point or more pertinently once you were aware that you would do more than 2 years.

The lunch allowance will go the same way as.

What is the £10 travel allowance?

Wh05apk

Not sure about HSBC and Brittania, but generally your expenses will be treated as expenses - i.e. to re-imburse you expenditure, therefore will not normally be taken, your wife's unsociable hours normally will as that is effectively part of her pay.

System

Are you an employee or a contractor working under umbrella/Ltd Co. It's a bit unclear.

System

As Wh05apk says they are re-imbursements for money paid and will/should be ignored

Arbee

Are you working at one particular location? If so then you will not be entitled to the mileage allowance once you hit the 2 year point

I think this rule would only apply to an IR35 type of employee right? I'm a regular, salaried employee of a software consultancy employing hundreds of people, so as I understand it my perment place of work is their main offices regardless of how long I'm on site?

I can't post a link, but if you google "Mileage expenses for business travel in employees own vehicles" the first link back is the rules that apply to me.

What is the £10 travel allowance?

I get £10 per day for the time it takes me to travel from my home to work.

Dave_Ham

I think you have a very slim chance (if any) of the mileage, travel and food allowances being used. Unsociable hours will be ok, although the bank may not allow 100% of this income.

If this is just for form filling and being compliant, great. If you require any of this income, then whilst the rates are attractive these are the least likely lenders to allow flexibility and income stretching...

Good luck

Arbee

Thanks Dave (and everyone). If we can include even 50% of my wife's allowance, than we should be fine for any house we are looking at. If we can't include either, than we are more limited (but there are some in our price range). I'll explain the situation fully to the HSBC rep and hopefully it will be ok.

Dave_Ham

Good decision, always be upfront and honest.

Just have in the back of your mind, that the branch HSBC advisor can only apply for one set of products and may be targetted heavily on applications.

I would just rationally check the information they provide, as do not want to be wasting your time.

All the best