Salary deductions & mortgage application

nikongirl

I'm looking to buy a house in the next year (before I turn 40 :eek:) and I'm just thinking about things I might need to do before I reveal my finances to a lender. I'm a single buyer and want to do as much as possible to get the best options.

For example, I take advantage of my employers stock purchase scheme (which is 99% of the reason I actually have a deposit!), so my NET pay is lower than might be expected from my gross salary. I could drop out of the stock scheme for a few months, but I don't know whether it's necessary. It's only 5% of my gross, but maybe every little helps.

Any advice?

ACG

I think there would be enough lenders who would ignore it. A lot only really count student loan deductions.

Assuming you plan on doing it yourself, check with the lender before doing anything. If you plan on using a broker, they will go through your bank statements and payslips and try to pre-empt any potential issues.

vacheron

I had the same issue when I applied in 2010 as my pension and £500 company share-save scheme deductions meant that my net pay was less than half it would have otherwise been.

I was told by the lender that as long as my payslip detailed the deductions, and that these were "non-obligatory", meaning I could voluntarily stop them at any time with no outstanding amount owing, then they did not consider them.