'Night out' money

Elfinpie

Hi,

Quick question. My husband is an HGV driver and works away regularly each week. For every night out he gets £26 (tax free) that is listed as expenses on his payslip. Would this income be taken into consideration as income when applying for a mortgage or not?

We have been messed around by an estate agent based broker (I know, I know) and I'm trying to find someone else at the moment, but in the meantime just trying to have a look at the affordability calculators to get a rough idea.

Thanks in advance

ACG

If it is listed as an expense then its unlikely it will be included as it is there to reimburse his outlay.

However, you may see some lenders who will accept a portion of it if it is showing on his payslips going back 3-12 months. Difficult to say without seeing the payslips and speaking to account managers but based on what you have said I think I would try and work without it if possible.

Elfinpie

Thank you, will do. I presume his P60 figure wouldn't include this amount either? Sorry for the questions but we've been twice bitten with duff advice and I'm trying my best to research with the right figures before we try again.

ACG

P60 shows earned income only so I would be surprised if it did include these figures.

Its the brokers job to work out how much you can lend.

thorsoak

ACG wrote: »

P60 shows earned income only so I would be surprised if it did include these figures.

Its the brokers job to work out how much you can lend.

Do you mean it is the broker's job to work out how much you can borrow?

ACG

Yes. Brokers will have decent idea with some basic information but if you are looking to stretch it to the limit then yes its down to the broker to work out how much is the maximum.

Elfinpie

Hopefully we'll not be over stretching. We earn 50k between us with an outstanding debt (loan & credit cards) of just over £20k. We're looking at a house of £140000 ( will be offering slightly less if accepted) with a 10% deposit. Credit file clean from 2014 (1 month sporadic late payments only), following a battle with a store card incorrectly reporting to CRA's and now corrected. Hopefully the new broker will be fab (recommend by a friend so fingers crossed). I know it's nowhere near as simple as that nowadays but I'm still hopeful!