What considered salary for purposes of affordability?

WLITC

When calculating my mortgage affordability can I count basic salary, London weighting and car allowance?

MortgageMamma

it depends on the lender, they all do it differently

OnTheRun

WLITC wrote: »

When calculating my mortgage affordability can I count basic salary, London weighting and car allowance?

Basic Salary - yes
London Weigthing - almost certainly as long as it is contractual and not time limited
Car allowance - possibly, but then they will probably want details of the car loan you probably got too

Thrugelmir

Do you need a car in order to perform your job?

WLITC

OnTheRun wrote: »

Basic Salary - yes
London Weighting - almost certainly as long as it is contractual and not time limited
Car allowance - possibly, but then they will probably want details of the car loan you probably got too

Sorry to clarify, I don't have a car or a car loan. Basically its just an additional £7k salary and taxed as such, its contractual and part of a recent promotion.
LW is also contratual and not subject to any time limit.

Thrugelmir wrote: »

Do you need a car in order to perform your job?

Lol no, which makes getting it all the sweeter :rotfl:

Thrugelmir

WLITC wrote: »

Lol no, which makes getting it all the sweeter :rotfl:

Though is of benefit to your employer.

WLITC

Thrugelmir wrote: »

Though is of benefit to your employer.

Yes, I don't know how it all works but clearly some tax advantage, suits me fine thought, I certainly don't need a car for the role but happy to have the additional allowance as salary.

BTW, just Googled a bit and I see that car allowance and 'location' allowance (which I would assume is the same as London Weighting) are generally counted as income for the purposes of the mortgage.

On a similar note, how does it work for deductions for private health care and travel loan allowance? Do they look at the take home salary and add back in the deductions for these or go on the actual sum you get paid into the bank?