Inaccurate Gross Income for Mortgage application?

mini8334

Hello I am just wondering if someone can help me understand this:


I have two forms of income. My salary from work and a monthly (non-Taxable) payment under the Armed Forces Comp Scheme.


Using round figure:


Basic Salary: 66K
AFCS: 30K


So my mortgage application has a Gross income of 96K.


However, my monthly net income is significantly higher that someone on 96K. How can that be used to assess affordability?


If I were Taxed on 96K I would have a monthly Take-Home of £4,700. But as I am not taxed on the AFCS income my actual income is £5,800.


It seems odd that to assess affordability they look at Gross figures? Surely looking at net income would be a better way to check affordability?


Or do I have a bad mortgage advisor?

kingstreet

Lender affordability calculators usually have places where additional income can be entered - taxable and non-taxable, so the output should be correct for your circumstances if correctly entered.