Salary Sacrifice and Mortgage Application

AdamJJ93

I have been told it no longer matters (generally) salary sacrificing your pension contributions when it comes to applying for a mortgage, as long as you can show the mortgage provider what you salary would be before salary sacrificing. Is this true? If so what would you need to show the mortgage provider? Thanks

Lorian

Does your pay packet show a figure for fall-back pay?

ACG

Most lenders will ignore salary sacrifice pensions on the basis that if you were struggling financially, you could stop making payments to the pension, the same can go for things like share save schemes.

Lenders typically work off your gross annual income anyway. Deductions they will not usually ignore are student loan and child care vouchers.