Which Bank Is Better For Commission

NewToTheUkAgain

Good Morning,

Apologies in advance if this question has been previously asked and answered already.

My salary is very heavily commission based and I wonder which banks look most favourably with this.

I intend to apply for a mortgage in about one year and would have a deposit of approx 20-30k.

I have only recently moved back to the UK and literally have no credit history, but have managed to secure a couple of bank accounts already, Pay Monthly Sim Deal and a sub prime credit card.

I do not intend to apply for anything else in the next 12 months apart from a mortgage.

So I guess my question is which bank should I use for my main salary for the next 12 months as I am guessing it’s always easier going to your own bank, but preferably one that takes commission well.

What are the likely borrowing for a income of approx 60-80k, sole applicant. I know a lot has to do with affordability but I really do not have much outgoings. No loans etc and CC with small limit will certainly be cleared in full every month.

Thanks so much!

muhandis

With about 25%:75% basic:commission split (with variable commission every month), Nationwide turned out to be the best for my situation as they took the average of the commission earned in the last three months and did not mind that one of those months showed a huge spike.

There might be other lenders or products now and your situation might have some variations from mine so this is DEFINITELY a job for a broker. See one.

If you don't want to pay a fee, there are lots of fee free brokers in the market, so that's not a reason not to.

Afaik, what bank you bank with has little/no impact on the likelihood of getting a mortgage through them.

NewToTheUkAgain wrote: »

My salary is very heavily commission based and I wonder which banks look most favourably with this.
Thanks so much!

NewToTheUkAgain

Yes I was thinking a broker, maybe I will end up somewhere like Trussle.

Thanks for your response too, it’s good to know there are lenders happy to take it.

dunstonh

Yes I was thinking a broker, maybe I will end up somewhere like Trussle.

Probably better with a local broker.

The internet/direct ones are factory line services who like to cherry pick the easy stuff but tend to fall over when you are pushing limits or have potential issues.

ACG

Trussle/Habito etc, I am not sure they are really for your situation.
You have 2 problems:
1) Heavy reliance on commission.
2) Lack of credit history.

You need a lender who will look at both and Trussle and the like tend to only want straight forward cases. I could be wrong, but I do not think you are their type of customer.

I would speak to a real broker personally.

NewToTheUkAgain

Thanks for the advice, I will definitely look at a local broker.

Is there a good place to look for mortgage brokers in terms of being a specialist etc

dunstonh

NewToTheUkAgain wrote: »

Thanks for the advice, I will definitely look at a local broker.

Is there a good place to look for mortgage brokers in terms of being a specialist etc

Avoid estate agent based brokers (unless its an independent). Apart from that, any whole of market broker should be fine.

Nowadays, mortgage brokering is a role in itself. So, the experience a local broker has should be all that is needed. Most local firms will have that experience.

NewToTheUkAgain

Definitely a broker who knows what there doing, I completed my outgoings and incoming on Trussle and they seem to think a mortgage of £162k! I only searched with them as they do not do any searches at this point.

kingstreet

I've done an application this week (with a high street lender) for a couple with incomes of £97,000 and their basics were only £30,000 of that.

The mortgage amount is £281,000 on a purchase price of £376,500 on HTB - it's a newbuild.

We used an average of last six months variable earnings and the lender was happy with that.

Any decent independent broker should be able to do this...