What income is used to obtain your affordability?

leedennisellis

Hello All!

My query relates to what income mortgage providers use to base your affordability on:

With my employer I get the following:

Salary
Car Allowance
Travel money
Lodge allowance

I guess the big one for me is the lodge allowance, we are given £100 per day which is for our hotel and evening meal. I work for a building contractor and work away from home Monday- Friday.


We claim or lodge allowance every 2 weeks and provide the receipts. If the receipts we supply total to £100 for the day we receive this by BACS payment straight into our bank account. If the hotel we stay in happens to cost £50 per night we would submit hat receipt and receive repayment back via BACS and the balance left over will be payed through our PAYE and taxed on as normal I.e £50 less tax and noted on out payslip.

With that in mind would mortgage providers take this income into account with this being shown on 3 months worth of payslips.

As mentioned I work for a building contractor who speclises in producing student accommodation developers across all the major cities in the uk. I live in North Wales therefore will always work away from home.

Any information would be greatly appreciated!

Thanks
Lee

kingstreet

Gross basic annual salary and car allowance.

I don't see the others being treated as income.

amnblog

Agreed.

The others would be considered return of expenses.

leedennisellis

Thanks for your quick reply guys.

Don't take offence but do you both work in the mortgage lending field?

Cheers

kingstreet

Yep. Thirty-one years.

Currently newbuild specialist mortgage broker.

leedennisellis

Ahh then you will be the man to know! Thanks for the reply!

HappyMJ

I would have thought if the excess £50 appears on your payslip with tax and NI deducted from the payment then it's part of your wages. I suppose how it's listed on your payslip could make a difference. If you had many payslips showing this additional payment therefore making it a regular payment then try asking a broker if that extra income could be included.

leedennisellis

This is my thinking...

The travel allowance I get is £400 per month and is noted on my payslip as "Pre-Tax Allowance" and a broker has used this income previously.

The lodge would also be shown as a "Pre-Tax Allowance"

kingstreet

I suspect a lender will require a copy of your contract or an employer's reference before it accepts something so vaguely worded on the payslips.

I don't see anyone being able to sell the top rate lenders on this, but there are a few niche players in the market who might take some of it into account with a heap of evidence to back it being paid for a year or two with the contract to explain it.

leedennisellis

Thanks for your reply.