How does my tax code and deductions affect mortgage affordability calculators?

Househuntingwoes

I've been playing around with mortgage lenders on line affordability calculators and they have boxes for 'other regular monthly expenditure'

I have a company car and health insurance so my tax code is only about 50L but this obviously isn't monthly 'expenditure' visibile on my bank statement (other than the fact it reduces my salary payment).

Likewise I pay £250 into a share save scheme each month (which can be stopped at any time) and also £50 towards the capital on my car (which cannot be stopped) and both of these are deducted from my salary at source.

Can anyone advise how this affects mortgage affordability under the MMR rules?

Should I be putting the total value of all these deductions in (about £500 per month) in order to get a more realistic idea of what we could borrow or is the calculation based on gross salary and only true 'expenditure'?

Househuntingwoes

Bumping for advice- can anyone help please?

sydenhambased

The best person to advise would be a whole-of-market independent mortgage broker (also known as an intermediary).

I may be flamed for saying this but I'll say it anyway. If you were to go to a broker, they'd be putting all of these details through affordability calculators that exist on the intermediary (broker-specific) websites of each lender.

These calculators are more in-depth than the typical calculators on the lenders' retail websites, and though many of the intermediary websites specify "This site is only for use by professional intermediaries" (or similar) a lot of them don't require any passwords to use the calculators.

Google is your friend.

J_Devon

This is something I was worried about as I pay for my pension, gym membership & critical illness cover all through salary sacrifice.

My broker took my standard salary and treated the salary sacrifices as general out goings which were included in my expenditure spreadsheet. I'm guessing it therefore didn't effect the affordability calculations.

I've no idea if this is the correct way to do it, but that's what he did with my application. I'm hoping for a written offer at the end of this week/beginning of next so can let you know how I get on.

Househuntingwoes

Thanks for the replies- does anyone else have experience (particularly with Nationwide) on this since MMR?

It's strange the salaries you input into these mortgage calculators are gross yet someone tax code can make a huge difference to their net pay and you don't seem to be able to factor that in.