Does this restrict our borrowing capacity?

[CJS]

Looking for some advice...

I work for an organisation with charity status. This means I don't get paid a massive amount, but it also means that my package is set up in a way that means about 40% consists of tax free allowances. Obviously this means that my taxable income that appears on my tax return and monthly pay slips is fairly low.

My question is, how big a complication is this going to be when we apply for an investment loan? Is the amount we're able to borrow going to be restricted to our taxable income only?

Can anybody shed some light?

 

[Rolf Latham]

Hi CJS

we do a lot of lending work with emloyees of charitables like pastors etc.

Lenders understand he difference between packaged and taxable, as long as you can clearly show there is a beneit to your disposable income .

Sal packing a BMW doesnt count for much, but sal packing rent mortgage or general living costs does

ta
rolf

 

[Peter_Tersteeg]

Employment letter or contracts explaining your salary go a long way to helping in these scenarios.

 

[Mick C]

Choosing lenders that look at your "net salary" rather then gross would help in the serviceability part + lenders who allow 100% rental income, allowance and benefits + one that allows -VE gearing to be considered


Regards
Michael

 

[CJS]

Thanks for that guys, I appreciate the input - especially because it suggests the answer I was looking for!