Question for any brokers

art200380

Our current 5 year fix rate mortgage ends in May 2020 and I will need to take another fix - the balance will be circa £140k.

This tax year I am salary sacrificing £50k in to my pension - or was for April and May 2019, but I've just had a thought that if I continue this all year my P60 will only show gross earnings of £20k for 2019/20 and will this cause me a problem when I come to remortgage?

I'm not sure what documentation they ask for these days but if they asked for my last 3mths payslips next May then my Feb and Mar payslip would only show me taking home circa £1250 and then Apr would be back to normal (take home £3k +).

Obviously I would explain that I was sacrificing a huge amount in to my pension and you can see the sacrifice on the payslip....but I don't want this to mean that I couldn't fix in as I don't want to end up on their SVR when I could move to another 1.8% fix product....

Can anyone offer any advice?

kingstreet

There will be no checks by your existing lender for a customer retention product.

For a remortgage (new mortgage with a new lender to repay the old one) some lenders might have an issue with this but many would view it as discretionary and may not be repeated in future.

art200380

Thanks - we are currently with the Britannia (Co-Operative) and if I was re-mortgaging today I wouldn't go with them simply because they aren't the most competitive when it comes to their 5 year fixed rate.

Mortgage_Adviser

Unfortunately keeping your finances tax efficient and having access to most competitive mortgage deals often doesn't comes together.