Mortgage application - payslip shows credit union deduction

UnorganisedGirl

I hope I'm panicking over nothing.

I got an email from my broker today to say that halifax have received the valuation and just need to look at my payslips. On every payslip there is a deduction of £400 to a credit union. This is a savings account not a loan. Halifax will just see a deduction though which brings my net pay down to £1600 as opposed to £2000.

Will this be an issue?

Wh05apk

Possibly, depends how tight you are on income, but you should be able to show it as savings and they should ignore it.

kimbers84

As long as you can prove its savings ie savings book/ statement than it wont be a problem.

Wh05apk

kimbers84 wrote: »

As long as you can prove its savings ie savings book/ statement than it wont be a problem.

Depends on the lender, and how they view it, some will see it as a commitment.

UnorganisedGirl

I'm not tied into paying it. I just liked that it came straight off my wages. I've sent my broker a copy of the statement to show that it's savings not a loan.

UnorganisedGirl

I don't think I'm tight in income. The halifax offered 190k and I'm applying for 104K. I earn 38000

Wh05apk

That should be fine, even if the take as a commitment, then you should still be well within what they will lend.

UnorganisedGirl

I think the fact they offered me £190K is ludicrous and a one way ticket to a default/bankruptcy

Wh05apk

UnorganisedGirl wrote: »

I think the fact they offered me £190K is ludicrous and a one way ticket to a default/bankruptcy

That is a straight 5x income, so shows your credit score with them is good, so you would still get about £160k even as a commitment.

kingstreet

UnorganisedGirl wrote: »

I think the fact they offered me £190K is ludicrous and a one way ticket to a default/bankruptcy

So use a rate of perhaps 7% to work out a comfortable mortgage amount, term and monthly payment then you know you should not have any problems.

UnorganisedGirl

That's what I have done. I wanted to ensure I could afford it even if the rates went up or if my finances are affected in the future such as during mat leave etc. fingers crossed I get a yes today!