Wage on a loan application

Jmurphy94

I am currently working away and receive a 10% salary uplift and a tax free living allowance which is paid in with my wages at the end of the month.

Say my wage is normally £1,000 a month and my uplift and living allowance take this to £2,000 a month, would my wage be £12,000 a year or £24,000 a year?

Could I put £24,000 a year on a loan application? Thank you!

System

The taxable pay is what you put down, it is what they'll go from. Things like bonuses, overtime and subsistence allowances aren't usually counted by lenders.

[Deleted User]

That would be whatever your earn before tax that gives you £12k take home pay

Puddylove

Hi
I'd suggest you put the minimum wage/salary you will definitely receive.
That way, anything they do lend you really should be affordable for you.
If you are having to make your income look higher, this could be a sign you are over stretching yourself.
May we ask how much you want to borrow, and for what?

BrassicWoman

are you going to be working away for the entire duration of the loan?

are the working away exenses used for things like extra rent and travel, so are not really spare money, or are they just a gift for flexing and you get bills paid on top of it?

Jmurphy94

I'm borrowing 15-17k for a new car. I currently have a loan and I can afford the payments, I am planning to sell my current car for 10k, then use the top up on a loan to pay for the new car.

It's not a matter of being able to afford the repayments as I can, I'm just wanting a low APR% approval by using a higher wage.

And the extra money is for rent and basic living whilst I'm away, but I profit a lot after I have paid my bills.

BrassicWoman

If it's for spending on rent, and you are spending it on rent, then it's not wages. So no, I think you cannot include it.

bargainbetty

Work out the actual sum you need to borrow, after you have sold your old car and paid off the loan on it.

Your basic salary is all you can reasonably claim as income, although you may find there is a box to enter details of assured additional income. Please bear in mind that if you are aware that the payments will end prior to the completion of the loan, you should not include them - don't claim what you don't have.

If the sum you want to borrow is more than 50% of your basic income, you may find it difficult to get a loan for the amount you seek, on any APR.

AndyPix

Sorry - did you say you have a 12k salary and are buying a 17k car ?? :eek:

Caz3121

AndyPix wrote: »

Sorry - did you say you have a 12k salary and are buying a 17k car ?? :eek:

I think it is a £25-£27k car with £10k from sale of existing car and loan on top!

Puddylove

Caz3121 wrote: »

I think it is a £25-£27k car with £10k from sale of existing car and loan on top!

No, we must have misunderstood - no one on a salary as low as £12k would borrow more than a year's income for a car - no one is that daft.
And surely banks etc. Would never loan this multiple of a salary?

OP - can you clarify for us?