Mortgages that take OTE in to account

softie

Anyone know of any mortgage providers that base lending amounts on OTE rather than base salary.

We've just had a mortgage refused with First Direct because of a 4 year old default that I have on a credit card despite being aware of it when they gave is AIP so essentially left with 2 options. Find a provider that will consider our application with my default or for my wife to apply on her own. Her basic salary alone, however, doesn't cover the amount we want to borrow with First Direct but her basic plus commision would more than cover it so need a provider that takes OTE in to account.

Any suggestions?

kingstreet

Is the commission/bonus guaranteed? Does she have a decent earnings record of the variables - perhaps 3 or 4 years P60s demonstrating this is usual?

holly_hobby

Commission/OTE - this is obviously a none gte payment, accordingly lenders look for a consistent history of receipt (generally a period between 3 -6 mths, P60s if irregular over the yr), and if amount received is variable will take the average of this, and then apply 50% - 60% of this mean fig to the affordability mix.

If you aren't using a broker you may want to engage one to assist in sourcing the most suitable lender, given your credit history (which you must reveal to permit him/her to make an appropriate and suitable recommendation).

As a side note, the reason why the AIP was originally given by FD and then later withdrawn, is due to the fact that they only perform a basic public domain check (so as not to leave a footprint) - expecting you to have revealled all relevant info. However this search does not disclose any payment profile issues or defaults (which you knew you had) - only the a CR search on submission of the full app relvealled the negative data which effectively dismissed the AIP - you are now aware that the subsequent rejection would have been avoided if you have disclosed the adverse at outset - but you now know this for next time.

Hope this helps

Holly

softie

None of its guaranteed but she's got 2 years p60's - wasnt in commisionable job before then.

Barclays, who we both bank with, have said they'll do it but at 6.19% for 10% LTV which is best part of 2% higher than the competitors.

holly_hobby

Take this deal to a whole of market broker to see if they can beat it, remember to disclose the rejected FD application and full details of any adverse, inc the os default you have discussed.

Holly

softie

holly_hobby wrote: »

Commission/OTE - this is obviously a none gte payment, accordingly lenders look for a consistent history of receipt (generally a period between 3 -6 mths, P60s if irregular over the yr), and if amount received is variable will take the average of this, and then apply 50% - 60% of this mean fig to the affordability mix.

If you aren't using a broker you may want to engage one to assist in sourcing the most suitable lender, given your credit history (which you must reveal to permit him/her to make an appropriate and suitable recommendation).

As a side note, the reason why the AIP was originally given by FD and then later withdrawn, is due to the fact that the perform a public domain check (so as not to leave a footprint), however this does not disclose any payment profile issues or defaults - the subsequent rejection would have been avoided if you have disclosed the adverse you had - but you now know this for next time .

Hope this helps

Holly

Thanks Holly.

I did disclose it - they seemed to think it wasnt a problem because it was 4 years old and our joint income (even without her commission) was more than we needed for the mortgage. The underwriters disagreed.

Whats your view on whether best to try and get a mortgage jointly with my default or just through my wife using OTE?

softie

holly_hobby wrote: »

Take this deal to a whole of market broker to see if they can beat it, remember to disclose the rejected FD application and full details of any adverse, inc the os default you have discussed.

Holly

Any that you'd recommend?

holly_hobby

Do you need all of her commission taken into account ?

How much was the default for ?
Whom registered the default ? and why did the account fall into arrears ?

With regards to the default, a lender will want to see a change in circumstance demonstrated from the time of registration, unless the default was as a result of a genuine dispute with the creditor - which is why you have chosen not to satisfy it.

So obv, where you have a default (and its not a genuine dispute) it is important to be able to convince the lender that your days of unpaid commitments are over, and the reasons behind the issue are long gone ..... obv the higher the LTV the more exposure to the lender, and any adverse will become a larger issue.

Of course a satisfied default will assist your case no end (even if disputed), whether you chose to do this is your own decision (if will fall off your credit record following its 6th anniversary of registration), but at least you have Barclays currently on board - it all depends upon if you wish to accept their deal or not.

Thats why I believe a WOM mge broker will be invaluable here, they have the market experience and access to be able to have an AIP with an UW via the BDMs, meaning that you are saved the legwork and numerous applications before finding a home (if you want to better the current BMS deal on the table) - check their fee structure to ensure you are happy before engaging them - unfortunately I am not permitted to recommend one, but your local yellow pages will have listings of suitable practitioners in your local area.

Hope this helps

Holly

softie

holly_hobby wrote: »

Do you need all of her commission taken into account ?


How much was the default for ?
Whom registered the default ? and why did the account fall into arrears ?

With regards to the default, a lender will want to see a change in circumstance demonstrated from the time of registration, unless the default was as a result of a genuine dispute with the creditor - which is why you have chosen not to satisfy it.

So obv, where you have a default (and its not a genuine dispute) it is important to be able to convince the lender that your days of unpaid commitments are over, and the reasons behind the issue are long gone ..... obv the higher the LTV the more exposure to the lender, and any adverse will become a larger issue.

Of course a satisfied default will assist your case no end (even if disputed), whether you chose to do this is your own decision (if will fall off your credit record following its 6th anniversary of registration), but at least you have Barclays currently on board - it all depends upon if you wish to accept their deal or not.

Thats why I believe a WOM mge broker will be invaluable here, they have the market experience and access to be able to have an AIP with an UW via the BDMs, meaning that you are saved the legwork and numerous applications before finding a home (if you want to better the current BMS deal on the table) - check their fee structure to ensure you are happy before engaging them - unfortunately I am not permitted to recommend one, but your local yellow pages will have listings of suitable practitioners in your local area.

Hope this helps

Holly

The default was for about 4 or £500 on a credit card with capital one. I refused to pay a late payment charge that i didn't think was justified (direct debit didn't go through - we argued for a while over who's fault). Rather childish but I then ignored them got a default and then cleared the balance when they offered me a reduced final settlement.

At no point was it due to any financial problems, more a head in the sand, f**k you attitude to capital one, which has obviously now come to bite me on the !!!!. Nothing I can do about that now though.

I'll try a broker although i honestly don't know where to start. Ive been recommended a couple by friends and acquaintances but they are all charging up front and I'm reluctant to part with what isnt a small amount of money if I'm flogging a dead horse.

holly_hobby

Ok.

All for the sake of a late fee of £25 (unless post the cc review reducing it to £12) .. bet you wish you could turn the clock back ..

Ok, you have essentially satisfied the account (albeit at a reduced offer settlement). Your CR should reflect this as partially settled - partially as you didn't repay the actual amount underpinning the default and which was lawfully owed.

Have you had a look at your credit record and printed it off to see how this is registered ?

Try check my file - sign up for the free trial - and you will obtain details held with the various credit reference agencies (CRAs) - http://www.checkmyfile.com/

If the debt is just shown as an unsatisified default with no record of any payment against it - you have some scope for an amendment to be made by Cap One - re the agreement made. This request would be direct to Capital One - and to which I presume you have your records of the discounted amount offered and your full payment of the same ?

It would also be a good idea to take any printed credit record data with you on any broker visit - whom don't ALL charge an upfront fee, but this will be a case of trial and error in making your investitations to locating one.

Holly

softie

holly_hobby wrote: »

Ok.

All for the sake of a late fee of £25 (unless post the cc review reducing it to £12) .. bet you wish you could turn the clock back ..

Ok, you have essentially satisfied the account (albeit at a reduced offer settlement). Your CR should reflect this as partially settled - partially as you didn't repay the actual amount underpinning the default and which was lawfully owed.

Have you had a look at your credit record and printed it off to see how this is registered ?

Try check my file - sign up for the free trial - and you will obtain details held with the various credit reference agencies (CRAs) - http://www.checkmyfile.com/

If the debt is just shown as an unsatisified default with no record of any payment against it - you have some scope for an amendment to be made by Cap One - re the agreement made. This request would be direct to Capital One - and to which I presume you have your records of the discounted amount offered and your full payment of the same ?

It would also be a good idea to take any printed credit record data with you on any broker visit - whom don't ALL charge an upfront fee, but this will be a case of trial and error in making your investitations to locating one.

Holly

Thanks Holly - I'll look at all of it. Yep - didnt occurr to me that not paying a credit card for a couple of months would mean i wouldn't be able to buy a house for 6 years. Still, nothing i can do now. Extremely frustrating but you live and learn I guess.