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Salary Sacrifice - Finanace
jjennison
Posts: 25 Forumite
Hi All,
I'm a first-time buyer and I've spoken to a mortgage advisor who told me that me and my partner have 'no chance' getting a mortgage if we have a car on finance.
We don't have one, but I'm wondering if a 'Salary Sacrifice' car is classed as one on finance so would therefore affect our chances of getting a mortgage?
Basically, the reason for this is that my current car keeps breaking and I don't want to dip into our savings to buy a new one as we've almost got our full deposit saved.
Thanks,
Jade
I'm a first-time buyer and I've spoken to a mortgage advisor who told me that me and my partner have 'no chance' getting a mortgage if we have a car on finance.
We don't have one, but I'm wondering if a 'Salary Sacrifice' car is classed as one on finance so would therefore affect our chances of getting a mortgage?
Basically, the reason for this is that my current car keeps breaking and I don't want to dip into our savings to buy a new one as we've almost got our full deposit saved.
Thanks,
Jade
£2020 in 2020 = £3670.82 / £2020
0
Comments
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The potential issue with both is affordability as if you're having £xxx deducted from your salary each month or paying £xxx for car finance each month you may not be able to borrow as much as you need.I am a Mortgage BrokerYou should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
David_White wrote: »The potential issue with both is affordability as if you're having £xxx deducted from your salary each month or paying £xxx for car finance each month you may not be able to borrow as much as you need.
Thank you, it would be affordable as we have a lot of disposable income between us (totalling about £1500 after essentials). Do you think this would be ok?£2020 in 2020 = £3670.82 / £20200 -
Enter your details in your chosen lender's online affordability calculator with and without the finance cost.
You will then see the impact it has on affordability.
As DW said, this is about how much you can borrow, not if you can borrow.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
We don't have one, but I'm wondering if a 'Salary Sacrifice' car is classed as one on finance so would therefore affect our chances of getting a mortgage?
Salary sacrifice is what it says on the tin. A reduction in your contractual salary. As you'll be receiving other non cash benefits in lieu.0
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