fiestaturbo.com

[lucasdemoley]

Hi,

Were looking at buying a house however the amount we can borrow with my wage is less than what we need to borrow. As we have a 25% deposit, repaiments would be easily managable for what I want to borrow.

What I'm wondering is, and does anyone know, does a company car count when applying for a morgage? Say the lease is £280 a month, does that count or not?

Cheers for help/ info.

Lucas

[bas saph]

You just disclose your gross Income. If they ask for more its down to you tell them. I take it the lease is shows as a deduction on wage slip though so a bit hard to cover up but 2 years ago it wouldnt have made a difference. How ever todays climate they are being difficault

[Ollie]

Your mortgage is decided on the basis of what you can pay off, so it based on your net income. Unless something to do with the company car is deducted from your wages, it's irrelevant.

[lucasdemoley]

Cheers.

I kinda meant it the other way round. I earn say £1,600 a month. I now get a company car worth say £280 a month. For a morgage will they still base the amount I can borrow on £1,600 or £1,860?

With the company car I have no insurance, tax etc to pay, and they cover all repair bills/ maintainance.

[Ollie]

£1600. The car doesn't form a part of your income for the purpose of a mortgage.

The absence of your other costs should be accounted for, they normally ask about monthly outgoings.

[Chris 2i]

I suggest you go and speak to an independent financial adviser mate, not the one based at the estate agents or the bank either. You won't have to pay anything, and they'll give you good general advice and find a mortgage to suit...

[bas saph]

I did my first two mortgages at 3 and half times my gross wages (no depts) with min outgoings.
Then I went self certificated which was kind of good but pants as you could get in trouble. All they did was check you was employed as long as you had 25% deposit. I borrowed over 90k when I was only earning £9360gross pa.
I then came unstuck because the banks pulled the plug on mortgages and I was with Northern rock being chanrge massive int rates which where killing me.

My current account bank came to my aid as although I wasnt earning much I had another 5k pa passing through my bank each year and great credit rateings. They gave me 4 times my income. The day my mortgage went through I was made redundant It was such a fine line If I had been with Northern Rock Id have had to borrow money every month to pay mortgage

[~nomad~]

I suggest you go and speak to an independent financial adviser mate, not the one based at the estate agents or the bank either. You won't have to pay anything, and they'll give you good general advice and find a mortgage to suit...

This, if you find a good one you will save alot of money. Its just making sure you find a truely independent one who is not trying to push to companies that they will earn more money out of. The fella I use is a godsend.

[~Vix~]

They work out what you can borrow on your gross income.

I had a company car but that wasnt taken into account and I work for a bank!