What multiples when commission is involved?

tomh_2

Hi,

My girlfriend and I are looking at houses to buy at the end of the summer. The problem is, we aren't sure how the multiples of salary work when highly comissioned jobs are involved?

I'm on £33k with about £2-3k of bonuses a year. She's on £23k basic, but commission means is about £60k.

We've got £35k deposit, and an overdraft and small c/c each, but they're minor and will be paid off before we move.

What kind of price are we looking at? It's central London, so the most we can afford is the plan...

stanmoresaver

There are many many lenders out there and they will all have a different way of calculating what constitutes income and their multiples.

I seriously suggest you contact a good "face to face" whole of market broker and discuss your options with them. Ask around friends, family and collegues for any recommendations to their broker.

SS

MortgageMamma

I Echo Stanmores comments, as a lot of it depends on how long you have been in your job, and how much of the commision you can prove, i.e. if you have been three three years and have three years commission track record some lenders will be willing to include a higher proportion of it. That said, most lenders will allowed at least 50% of your commission. If the broker you see decides to self certify your mortgage, you could include all of your commission. Ask your friends, colleagues and relatives for recommendations of a good broker.

herbiesjp

There are a few lenders that will take a P60 figure or your payslip figures into account (100%), but as has already been stated, it will depend on your whole scenario.

Have a word with a whole of market adviser who will be able to point you in the right direction.