Gross pay for mortgage affordibility

PP1984

I was hoping someone could clear this up for me please. I've used some mortgage "how much can you borrow" calculators. Each ask for gross pay.

What exactly do mortgage lenders mean by gross pay, considering that some say you shouldn't include productivity / bonus / overtime pay?

My payslip is formed as follows:

Total Gross Pay = (Basic Pay) + (Productivity pay) + (hourly pay) - (childcare vouchers) - (pension exchange)

Total Taxable Pay = (Total Gross Pay) - (Non-taxable portion of hourly pay) - (expenses, if any)

Net Pay = (Total Taxable Pay) - NI - Tax - (Student Loan)

What exactly should I be using in these online calculators, and what really do lenders use? My "Total Gross Pay" varies significantly, between £3000 and £4200, depending on the time of year. I'm guessing they want the Gross Basic, minus childcare vouchers, minus pension exchange. Am I right?

Thanks for any advice on this.

amnblog

What you input depends on how your employment contract is written and how each lender treats each channel of income.

For this reason online calculators are of little use to you.

Speak to a broker if you are not well clear on your bottom end basic income.

016hnoor

What exactly do mortgage lenders mean by gross pay, considering that some say you shouldn't include productivity / bonus / overtime pay?

CKhalvashi

016hnoor wrote: »

What exactly do mortgage lenders mean by gross pay, considering that some say you shouldn't include productivity / bonus / overtime pay?

As above, it depends on the individual lender and calculators are for some people of little use.

I'm going to take a bet that OP is a pilot, from the way his/her pay is structured, and probably with Easyjet, again from this, who operate a much larger schedule in the summer than winter.

PP1984

016hnoor wrote: »

What exactly do mortgage lenders mean by gross pay, considering that some say you shouldn't include productivity / bonus / overtime pay?

I see how dumb that sentence might sound...
What I meant is that "some" of them of them say not to include those items, but not all. Is this just an oversight by the ones that don't specifically mention it, and later down the line you find out they are all asking for the same gross figure.

The other aspects, such as pension exchange and childcare vouchers, which amount to about £5k pa, would affect the max borrowing amount by quite a bit... I would imagine.

I have looked in the employment contract and it has my basic salary, and then refers to the additional payments but doesn't give any figures.

Anyway, point taken about the calculators being of no use.
I'll ask a broker about it.
Cheers.

jonesMUFCforever

I would mean it to mean the worst case scenario = what is the lowest gross pay should you not get any bonus etc