Mortgages and pension salary sacrifice

edited 30 November 2020 at 11:28AM in Mortgages & Endowments
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MaxiRobriguezMaxiRobriguez Forumite
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edited 30 November 2020 at 11:28AM in Mortgages & Endowments
Hello -

Does anyone have any experience on how mortgage providers factor in people who sacrifice a lot of money into workplace salary sacrifice schemes?

My payslips clearly show the pension contribution so I can prove my gross salary, but would my borrowing amount be limited to 4.5 net pay?

If there is an impact, is there anyway to understand how the different providers deal with it (ie, which providers use net rather than gross, or how providers come to decisions). I know the actual formula's per provider won't be available so I guess I'm looking for anecdotal evidence from others here.

Cheers.

Replies

  • ACGACG Forumite
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    Most lenders will ignore pension contributions as it is not a contractual obligation - ie if things become tight, you coudl stop paying in to the pension. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • MaxiRobriguezMaxiRobriguez Forumite
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    ACG said:
    Most lenders will ignore pension contributions as it is not a contractual obligation - ie if things become tight, you coudl stop paying in to the pension. 
    Thank you. :)
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