Commission based mortgage query

luckynumber37

Hi all,

I have found a property I’d like to buy for £325k, I have a deposit of £40k and am finding it hard to borrow the amount I need for the property due to the fact that the majority of my earnings are from commission.

I have been with my current employer since February ( 8 full months), my basic salary is £19,500 but if you average out my commission to date I am effectively earning £56k.

Do you think my situation allows me to borrow what I need to get this place?

Any advice on lenders that will take a view on my commission and lend me the £285k I need?

Thanks I’m advance.

ritz55

There are lenders who will go 6 times salary. You’ll need to talk to a good broker for access to these deals

csgohan4

Generally lenders only lend x4.5 and not every lender takes commission 100%, a lot will only take 50%. Seems your over stretching your budget.


But get a broker who can match you to a lender

ACG

I think your chances of getting this is very very slim.
The lenders who will go to 6x income will probably not do 6x your commission and they would typically only do 6x income for certain occupations.

The other issue is that your commission makes up around 75% of your income and there is no real history of it.

Maybe in 12 months or so once you have 18 months history of that sort of income you will have a decent chance but at the minute I would say slim at best.

amnblog

You are seeking to borrow £285,000 and you can evidence a total of £37,000 in the time you have been in your employment.

Even if you were on a full £56K salary you would not find many Lenders that will go to £285,000.

We have not seen details of your outgoings which will have a further impact.

Your most likely response from a Broker will be buy lower, or wait longer.