Mortgage application affected by salary sacrifice?`

b1gdeano

Im after some advice please?

It has just dawned on me that moving onto a salary sacrifice pension may affect a future mortgage application from myself?

I currently pay into my pension after tax but the company is asking people to move over into the salary sacrifice model - all good I was thinking!

I know the company said they would provide a notional salary figure which would be the same as the pre-sacrifice salary amount but I am wondering would lenders take this figure or would they be looking at the lower figure?

If it will affect it I will just opt out of SS and stay in the traditional version - at least until I have a mortgage then perhaps opt in.

I am also considering taking childcare vouchers via SS, but this would only be for 18 months max as would be going school then and I am not planning on getting a mortgage for 2 - 3 years so would have cancelled that SS by then.

Tl;DR - does salary sacrifice affect mortgage applications?

Thank You

ACG

I was reading this yesterday - http://www.mortgagestrategy.co.uk/news-and-features/sectors/regulation/santander-slammed-over-absurd-and-worrying-pensions-stance/2018408.article

With some lenders it could be an issue with others it may not. It will come down to the figures involved and the lenders stance when you come to apply.

I wouldnt worry about it as it appears to still be all up in the air following mmr. Lenders have different views and affordability calculations. If its tight when you come to apply, speak to a broker.

fimonkey

I took out my mortgage prior to mmr, but yes my SS for my pension affected the amount I could borrow.