Flight Duty Pay and Mortgages
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Join Date: Dec 2006
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Flight Duty Pay and Mortgages
Hello
Does anyone know if i can use my FDP allowance towards a mortgage???
My advisor seems to get very confused by the whole FDP situation!!
Cheers
Does anyone know if i can use my FDP allowance towards a mortgage???
My advisor seems to get very confused by the whole FDP situation!!
Cheers
Join Date: Aug 2003
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seems to depend on the lender and sometimes even they don't know themselves! For me, Santander initially said yes it did then changed their minds twice after that following much pressure from my broker. This was 3 months ago. Northern Rock also said they would I recall, others didn't but I can't remember who. Good luck!
Join Date: Apr 2009
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It will depend A. on the lender and B. on what your load to value is. The higher the LTV the more they will look into it. If you have pay slips that show the additional pay is a regular item then you shouldn't have too many problems.
Best thing would be to go and see an INDEPENDENT mortgage broker who can guide you through the process. Make sure there are no stupid advice fees though and do have a damn good shop around for any insurance products you may buy as price differences can be huge.
Best thing would be to go and see an INDEPENDENT mortgage broker who can guide you through the process. Make sure there are no stupid advice fees though and do have a damn good shop around for any insurance products you may buy as price differences can be huge.
Join Date: Jan 2007
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FDP's
Guys you are treading on dodgy ground here. It depends on what your FDP really is. Is it a fully taxable amount that is part of your salary or is it what used to be called "allowances" to cover food and expenses whilst on duty?
If it is the former and you are being paid your expenses another way then it is part of your salary and eligible to be counted towards mortgage calculations. If it is the latter then most airlines have managed to get the majority of this amount tax free. The argument for having this tax free is that under almost all circumstances the crew person will be spending all this amount on expensive hotel food.
If you now are saying that you do not need all this money to survive away from home and a lot of it is being used to pay for expenses at home (like a mortgage) then the tax man will come along and (quite rightly) say that this payment is not wholy being used for the purpose for which it was intended and take away the tax free (or partial tax free) status of these payments. Your colleagues will really love you for upsetting the apple cart. Best keep quiet because I can assure you that this government is looking at every way to claw money out of the tax system and you are opening up a glaring hole. I suggest you start spending all your FDP's for the purpose they were intended!
Guys you are treading on dodgy ground here. It depends on what your FDP really is. Is it a fully taxable amount that is part of your salary or is it what used to be called "allowances" to cover food and expenses whilst on duty?
If it is the former and you are being paid your expenses another way then it is part of your salary and eligible to be counted towards mortgage calculations. If it is the latter then most airlines have managed to get the majority of this amount tax free. The argument for having this tax free is that under almost all circumstances the crew person will be spending all this amount on expensive hotel food.
If you now are saying that you do not need all this money to survive away from home and a lot of it is being used to pay for expenses at home (like a mortgage) then the tax man will come along and (quite rightly) say that this payment is not wholy being used for the purpose for which it was intended and take away the tax free (or partial tax free) status of these payments. Your colleagues will really love you for upsetting the apple cart. Best keep quiet because I can assure you that this government is looking at every way to claw money out of the tax system and you are opening up a glaring hole. I suggest you start spending all your FDP's for the purpose they were intended!
Join Date: Oct 2007
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If possible don't fall into the trap of trying to maximize what they will lend you. That's what has got us into this mess in the first place.
I feel for those guys who are on a bum deal having to pay for type ratings, line flying etc and need to borrow more still to afford a first house etc, but try to be realistic and start on the property ladder with something that's well within budget such as an apartment. Even if it's not in the most exclusive area you can always up sticks once you climb the job ladder.
The problem with flight duty pay is that you only get it when you fly, so it's not guaranteed. Also, the tax man takes less of that money as it's your expenses, but we all know that any day now he's going to start picking off a lot more from that pay - after all you are a privileged employed person and must support all the stay-at-home lazy scum that are struggling to save enough benefits to afford that latest plasma TV and Xbox etc.
I feel for those guys who are on a bum deal having to pay for type ratings, line flying etc and need to borrow more still to afford a first house etc, but try to be realistic and start on the property ladder with something that's well within budget such as an apartment. Even if it's not in the most exclusive area you can always up sticks once you climb the job ladder.
The problem with flight duty pay is that you only get it when you fly, so it's not guaranteed. Also, the tax man takes less of that money as it's your expenses, but we all know that any day now he's going to start picking off a lot more from that pay - after all you are a privileged employed person and must support all the stay-at-home lazy scum that are struggling to save enough benefits to afford that latest plasma TV and Xbox etc.
