How is commission viewed by lenders re mortgage applications?

brians_daughter

How is commission viewed by lenders?

Earnings have been consistent over last 4 years but this years commission will be higher than previous due to a re-structure in the commission system.

Do lenders take 100% of the commission into account as its been consistent or is it generally a set %?

Anna

leeves

Im also very interested in this, and how do they view bonus? ie: I have averaged £400 over the last 12 months...

Simon_gloster

Most will tale 50-60% of the gross amount. Commission only jobs are treated with utmost caution. Usually your asked what your gross basic annual income is....then any add on calculated by the systems.

brians_daughter

Simon_gloster wrote: »

Most will tale 50-60% of the gross amount. Commission only jobs are treated with utmost caution. Usually your asked what your gross basic annual income is....then any add on calculated by the systems.

Thanks for this.

Been in the same job 10 years and commission has been between 17,500 and 22,000 per annum so pretty consistent. So, 60% max then generally

Simon_gloster

Generally yes due to it's uncertainty, however if it's guaranteed commission, year to date figure backed up with tangible evidence of past income could warrant all of it being used.Base your mortgage findings on this formula first.

Alternatively should you need to use 100% of the commission seek a broker. All the best.