Wage query when applying for a mortgage?

Hi there,

I am looking to apply for a mortgage in the future and as part of my wage I receive a 25k benefits package per annum. This is paid monthly as part of my wage and will never change. However, it shows as a separate payment, as in I get a basic wage amount and then my benefits package amount, the two of them make up my overall wage. I also get a yearly bonus but I know that this will not be included for mortgage purposes. I just want to make sure that the benefits package will be included as part of my wage? I have documentation from my employer to say that it will never change. Does anyone know if this will be an issue?

What is a "benefits package"? Is it a car allowance or living allowance & fully taxable or expenditure compensation?

It is made up of car allowance and mortgage subsidy. The figure used to increase each year but there was a change put in place last year. I received a letter from my exployer to say that I will receive this set figure every year from now on, on top of my basic wage (which increases each year).

To clarify, it is now just called "benefits package" on my wage, it is not broken down into anything specific like car allowance etc.

hard to give you a definitive answer on this. Some mortgage providers will include this type of benefit as salary. Most, (including my own bank) tend to apply a discount to any benefit other than salary to reflect the uncertainty of its sustainability.

I have had to fill in mortgage applications and if an employee is receiving an allowance, I state the allowance and tick whether it's guaranteed or not.

I never heard of a mortage subsidy as part of pay. Why were you getting that when you don't have a mortgage. Is it taxable / prsiable etc?

mortgage subsidy is just a perk of the grade I am on. You get it towards rent/mortgage repayments. However it is no longer called that. I just get a guaranteed "benefits package" now per annum, it is not broken down into anything specific. I just get paid it the same way as I do my wages, it appears on the pay slip as Salary: x amount , Benefits package: x amount. And they are both the same every month. Yes I pay tax on it.

If it is guaranteed, as you say, might your payroll section not facilitate you with simplified payslips showing your composite salary for the purposes of the mortgage application?

Hmmm I am not sure they would facilitate that Michaelm as it might mess up the system, but they would certainly give me something to prove my total gauranteed annual salary. Would this suffice do you think? They are worldwide and very reputable. I just don't want there to be any confusion about my total salary.

If the benefits are included in the letter covering total guaranteed annual salary then that should be acceptable to a Bank.