salary mostly commission based, where to go for mortgage

jules1234_2

Hi

Hope somebody can help. we have existing mortgage with barclays, we are looking to move but they have turned us down for extra mortgage..

I have no income (full time mum) my husband earns around 40k but only 13k is a basic salary rest commission. barclays would only count a salary of 26k because of commission.

My husband has only been with this company since may but has been doing same job for about 6 years with no break.

we need a total mortgage of 160k to move to a 345k house. we have no other debts and have good credit rating.

any ideas please?

luckyfool

C&G might consider it, though to be honest I really do worry that you are looking to get a mortgage for 4 * your husbands commission inclusive income, for a job he has been in 5 months.

koexelek

luckyfool wrote: »

C&G might consider it, though to be honest I really do worry that you are looking to get a mortgage for 4 * your husbands commission inclusive income, for a job he has been in 5 months.

The fact he's only been doing it for a few months will go against him with the lenders as well.

They will argue he has no track record in his NEW job

herbiesjp

jules1234 wrote: »

Hi

Hope somebody can help. we have existing mortgage with barclays, we are looking to move but they have turned us down for extra mortgage..

I have no income (full time mum) my husband earns around 40k but only 13k is a basic salary rest commission. barclays would only count a salary of 26k because of commission.

My husband has only been with this company since may but has been doing same job for about 6 years with no break.

we need a total mortgage of 160k to move to a 345k house. we have no other debts and have good credit rating.

any ideas please?

How many children do you have?

You would be classed as a dependent, along with the children - so many lenders would reduce income multiples as a result.

However I am assuming you get tax credit etc as well, which can be taken into account.

You say he is earning £40k - but he isn't. He may have done in the past, but currently, as he has only recently started this job, he has not earned that figure yet.

Having said that, due to the low LTV, there may be some lenders that could look at this.

Whether it is the right thing to do or not, only you can decide.

You need to speak to a whole of market adviser to see if they can find anything, to show you how it would affect your monthly disposable income income

Have you done a detailed budget planner?
Do you have a good credit history?

lizzielondon

Hi, is C&G Cheltenham and Gloucester?

I am in the same position as the OP- My partner and I would like to get a mortgage as first time buyers, however a large amount of my partner's income is commission with only 20k basic-

Would anyone touch us? Rent is now costing us far more than mortgage payments would

although this is calculated on a 90% mortgage which is what we would need- would we be likley to get this as ftbs?

Thanks very much for any advice

herbiesjp

Yes - C&G is Cheltenham & Gloucester

There are definitely lenders that will look at commission income.

However that is just one piece of the puzzle.

The lender will look at the overall situation, and then decide whether or not you fit the criteria of what applicants they are looking for at present.

Impossible to say whether or not you would get a mortgage based on your post, as there are no actual figures to work with i.e. property price (10% deposit), breakdown of incomes, debts etc.

At 90% borrowing though, I would recommend a broker, as you do not want to get declined by lenders down the high street - which could impact on your ability to get a mortgage with the right lender.

lizzielondon

Thanks so much for the reply

ok i'm 24, OH 25

i earn 28k and partner prob 35k ish, we'd like to borrow 180k and pay a deposit of 20k for a 200k property- (london)

debts: we both have student overdrafts & i have a small amount of credit card debt. I also have a large student loan which i believe isn't taken into account?

i think the best thing would be to sort out ccs and overdrafts for a year and buy in about a year? our salaries are expected to be broadly the same then but mine is expected to jump to about 45 in 2-3 years (graduate program)- i'm not sure any mortgage company is going to be able to take this into account though?

I don't know if it's relevant but I have the ability to take a 7k interest free loan from work (repayable over 3 years i think) - would this be a good thing to do- i'm undecided whether the advantage of a larger deposit would outweigh the disadvantage of lower disposable income (which is i assume what mortgage companies consider?)

I'm sure you can tell I have no clue- so would really appreciate it if someone could let us know if we have any chance at all in the near future

lizzielondon

Also I'm sure this is silly bit how do I find a broker? And how much do they charge?

herbiesjp

Some brokers charge, some don't.

Again in terms of debts and income - different lenders work differently in terms of their affordability calculators and what loan amounts they can agree, so no catch-all answer there.

Borrowing for a deposit is not allowed or adviseable - even interest free. If you take out more borrowing, this will reduce your mortgage amount, as the monthly repayment for this loan needs to be taken into account by the mortgage lender (even if it is interest free).

Without knowing the exact figures i.e breakdown of commission, actual overdrafts and cards etc it is difficult to say, however you should be able to find a lender at present that could help at 90%.

Again maximising you chances of a good score would mean things like having a good clean credit history - so make sure that is all correct and up to date, and make sure that you are on the electoral register.

A good broker will hold your hand through the whole process and explain what you need to be doing .

lizzielondon

Thanks again, will my student loan be taken into account?

Conrad

Yes all outgoings are taken into account.
There are a couple of small private lenders than can consider commision only. Depends on the overall scenario presented. A good broker will be able to guide you.