Salary Sacrifice - Finanace

jjennison

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

David_White

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.

jjennison

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?

kingstreet

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.

Thrugelmir

jjennison wrote: »

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.