Mortgage with company car

stalkah

Hi All,


Just (hopefully) a quick one.


I have a company car with taxable benefit in kind of about £7k, so my tax statement shows my total taxable salary of around £7k more than I actually receive in my salary.


Do mortgage companies look at you total earnings with this included? With out it? Or worse yet do they take away from the amount they'll lend because I'm actually paying more tax than someone else without a company car?


Hope this makes sense

Scale_Rule

Car doesn't come in to it. Gross pay on your payslips x12 is what you earn.

Paully232000

Surely the mortgage company wont take this £7K/annum into consideration as you cant pay a mortgage with a benefit in kind. Just your take home pay i would have thought.

stalkah

That's what I thought/assumed but someone mentioned it to me the other day, saying their mortgage company leant them more (I will always take what this guy says with a pinch of salt) because although I'm a PAYE employee I still Self Declare as well and they can look at that apparently?


But then I started worrying that what if they lowered the amount they'd lend because I actually pay more tax a month than someone without a company car.

hcb42

Salaries show a base plus car, so the amount you earn - excluding the car - is the amount you earn

If someone had a car allowance, and not a car, then they might have more to play with, assuming they were not spending the car allowance servicing the debt of an actual car (which would have to be declared anyway)

You would not want mortgage companies going to this end to include the £7K in any event hopefully.

amnblog

Hcb has just about hit the nail on the head.