Mortgage allowance with tax-free income

emilysparkle

Hello

My partner and I are first-time buyers and are looking into mortgages. I work for a European body which somehow makes me an International civil servant and I don't pay UK income tax (I am assured that this is legal - if it weren't, we're a big enough organisation that someone would notice). Because of this tax status I have accepted a lower salary than I might otherwise have done, because my net salary is higher. My partner pays usual tax with his job, and his net salary is slightly lower than mine.

Now that we are looking into mortgages, I wonder how this tax status would affect the amount we'd be allowed to borrow. Would mortgage lenders take into account my actual salary, or the taxed salary that my salary is equivalent to? Are there some lenders that would work one way and some that would work another way?

I used the online calculator and put in my equivalent taxed salary and my partner's salary, and we'd be able to borrow £179-£200k, but if I put in my partner's salary and my actual salary, we'd only get £155-£174k. Obviously, we'd like the first one, which also seems fairer as it's based on the amount of money we actually have available.

Any help would be greatly appreciated,

Emily

ACG

This will come down to each individual lender.

I know some lenders will only base the maximum they will lend on youractual income rather than your net take home pay.

There will be lenders that take the whole situation into account but i think you need to go and speak to a mortgage advisor, let them do the running around for you.

holly_hobby

Not being liable/paying UK tax will also be an issue with a number of lenders - as ACG states you need to sit with an experienced whole of market mge broker, whom may know of a home off the top of his head, or will utilise his BDMs to try and place this for you.

Hope this helps

Holly x