Affordability Calculator

DandelionPatrol

chrislee2810 wrote: »

Currently I have 30k in savings and will be 45k by the end of November.

You could nearly be at 80% LTV, which always looks good.

muhandis

We are in the process of buying a house primarily based on my income which is structured in a similar way to your's - 1x basic + anywhere from 2x-10x as monthly commission.

We had the same issue when we enquired with lenders directly most of whom quoted ridiculously small figures.

Eventually we went to a broker who said 2 lenders work best for my pay structure -

Nationwide - they take 100% of basic plus 100% of the average of last 3 months commission (as long as it is paid monthly).

Santander - they take 100% of basic plus 100% of the lowest of last 3 months commission.

That ruled out Santander for us since my 3 commissions were 2x 4x 16x and we needed the 16x to be considered in some way to get the loan amount required.

The good people at Nationwide were extremely slow and incompetent with their processing of our application but eventually gave us a 90% LTV offer without any queries about the disproportionately large payslip.

The only pay related documents we needed were the 3 months' payslips, bank statements showing salary credits and last P60 (which was only a fraction of the income considered for the mortgage, but again no queries or issues on this front).

Try using NW's full affordability calculator here https://www.nationwide-intermediary.co.uk/calculators/aff_calc to get an idea of how much they will potentially lend.

For annual commission just put in the annualised figure based on your last 3 monthly commission amounts.

Hope that helps!

chrislee2810 wrote: »

Hi,

Thanks for your help in advance. For the last 2 years I have earned 47k per year but I have had a decent year this year and I am on track to earn 100k plus. Now I have a meeting with my bank next week and they have asked for the last three pay slips, the last 3 months have been fairly well paid months. They show as £32000, £22000 and £9000 but historically it's about £4000 per month. My pay is heavily geared on commission, my basic is £19094. Do I just tell them that this is not my average pay, and how do they work out how much we can borrow if commission is involved?
The other issue is that my wife is self employed and her accounts show that this financial year she has earned £25k, last year she earned 17k and the previous year she earned 11k.

Also anyone also give me a idea of how much we could borrow?

Thanks

chrislee2810

Thanks for the info, looks like nationwide may be a option.