Salary sacrifice and mortgages

missspeedy23

I'm interested in feedback from other users who have/applied for mortgages with a salary sacrifice.

I work in the public sector and lease a car through work via salary sacrifice which reduces how much tax/NI I pay.

My partner and I are looking at buying a house and we're getting conflicting advice as to whether mortgage companies (more than likely will be Nationwide) factor these in before or after deduction. For example my gross pay before the sacrifice is £30k, afterwards £25k - which looking at their online calculate is the difference between £135k and £165k mortgage. Our financial advisor has said they would "more than likely" use the net figure (i.e. he's not really sure!) but I've read numerous conflicting stories online.

We wouldn't be able to get the house we want with a mortgage of £135k so £30k is a massive difference to us.

Has anyone else got a mortgage with a salary sacrifice and how did they calculate it?

Thanks

somethingcorporate

I got a mortgage via nationwide with salary sacrifice just a couple of months ago. They used the pre-sacrifice salary.

missspeedy23

Thanks for the quick response. That's good news then as we can afford the higher value no problem it was just the issue of what figure they would use. Thanks a lot.

somethingcorporate

No problem. I am quite surprised your broker didn't know this....this is the kind of expertise you should be paying them for!

knocker01

I had a similar situation. With my payslips I had a gross take home pay of over £40k but after salary sacrifice (childcare vouchers and pension) my P60 showed a net salary of around £35k. This didn't seem to cause any problems with my lender, Natwest, and we are hopefully going to complete this week.

RougeAce

The days of simple salary multiple mortgages are long gone. Mortgage providers now have a legal responsibility to perform an affordability check. This uses information on your income and outgo to determine the level of mortgage you could afford over a particular term. As a result the bottom line number on you pay cheque will be used as income with you providing details of your outgoings.

Hope that helps. Good luck.

ethank

I am a HR Manager, we issue reference letters for employees with the 'contractual' pre-sacrifice salary.