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Salary sacrifice on mortgage application

Cheryl2022
Cheryl2022 Posts: 41 Forumite
Third Anniversary 10 Posts
in House buying, renting & selling
Hi 
I have a car on salary sacrifice through my work and we are looking to buy a house. Will this affect how much I can borrow? Thanks in advance 

Comments

  • Tailender_Investor
    Tailender_Investor Posts: 20 Forumite
    10 Posts
    As part of a mortgage application you normally have to show proof of income, I.e recent payslips. So if it is shown as a deduction then it will likely reduce the amount you can borrow. 
  • housebuyer143
    housebuyer143 Posts: 4,130 Forumite
    1,000 Posts Third Anniversary Name Dropper
    Cheryl2022 said:
    Hi 
    I have a car on salary sacrifice through my work and we are looking to buy a house. Will this affect how much I can borrow? Thanks in advance 
    Yes, they will look at the gross pay listed on your payslip and by it's nature salary sacrifice makes your gross look lower. 
    My husband was sacrificing 40% of his salary at one point and the mortgage company refused to lend us based on his actual salary. We were advised to cancel it so we had a payslip showing the real salary. I imagine you can't do that if you have the car though.
  • Cheryl2022
    Cheryl2022 Posts: 41 Forumite
    Third Anniversary 10 Posts
    No the car goes back in June though 
  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It will depend on your lender and also how your payslip shows it.  My payslip shows my original full salary and then a deduction line for salary sacrifice (pension in my case) to get to "gross pay".  I am certain when I applied for a mortgage this was acceptable.  If you are using a broker they might be able to find you a lender who will use the higher amount.
  • Snookie12cat
    Snookie12cat Posts: 805 Forumite
    500 Posts Third Anniversary Name Dropper
    Cheryl2022 said:
    No the car goes back in June though 
    Then, once the car goes back and the salary sacrifice ends, get one payslip with the correct salary and it will all be fine.
  • Jonboy1889
    Jonboy1889 Posts: 168 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I think it depends what the salary sacrifice is and also the bank- I had various things in mine (shares, critical illness, etc) but as they could all technically be stopped at any time they are ignored - but a car can’t really be stopped
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