Interested in whether mortgage brokers are seeing an increase in clients opting for salary sacrifice or higher pension contributions which could mean they have lower earnings, and can borrow less on mortgage application.
National Insurance changes next mean more people are falling into a higher tax next and one suggestion for higher earnings is to consider salary sacrifice (such as for bike schemes) or to increase pension contributions so they pay less tax.
The flip side is that as salary is lower you can borrow less on a mortgage application.
- Are you seeing more client opting for salary sacrifice or higher pension contribution due to upcoming tax changes?
- Has the amount they can borrow significantly lower?
- Is this or could this be a long-term trend in the market as taxes rise?