Which banks take 100% of your earned commission when you apply?

allacesal

Hi guys,

I’m hoping somebody on here will know the answer to this...

My wife and I are looking to move house in spring 2020, she is on a fixed salary as a teacher, and my role in sales is heavily commission based. Having looked at a few mortgage calculators I’m curious to find which banks/building societies take 100% of my earned commission into account when they decide how much to lend me. My basic is 18k however this financial year I am on track for 24k commission so if we look at banks that only factor 50% of that it has a real effect on how much we can borrow. My plan is to contact the banks that take 100% of my commission in their equation to get the best offer.

Thanks a lot in advance guys

[Deleted User]

You are asking the wrong question as its not as easy as that. As an example, I had a case recently where Nationwide (who take 100% commission) would lend LESS than HSBC (who only take 50%).

You just need to go door to door on the calculators to see who will lend what you need. No point limitting to one subset of lenders.

Retired_Mortgage_Adviser

As JMA says, there are a lot of factors that will determine the best lender for someone on commission. In your place I would just get a broker to do the leg work. Any half-decent broker would have dealt with people in your situation and (on the face of it) it should not be too difficult to place.

Nationwide take the average of the last x commissions paid and use 100% of it, depending on frequency of payment.
Annual and half-yearly - last 2 years
Quarterly - last 3 quarters
Monthly - last 3 months

Santander will also consider 100% but will take the lowest of the last x commission payments.

Nationwide used to be my go to lender for people on varying commission as the way they treated it would often maximise borrowing for borrowers who had seasonally varying commission and could time an application that way.

Just to be clear, the above is just generic information. As JMA said, the specifics are key and you need someone to look at the whole of your circusmtances to recommend an appropriate lender/product. Since you are just at an exploratory stage, you could just get a free consultation with a broker and see what lender they recommend.

allacesal wrote: »

Hi guys,

I’m hoping somebody on here will know the answer to this...

My wife and I are looking to move house in spring 2020, she is on a fixed salary as a teacher, and my role in sales is heavily commission based. Having looked at a few mortgage calculators I’m curious to find which banks/building societies take 100% of my earned commission into account when they decide how much to lend me. My basic is 18k however this financial year I am on track for 24k commission so if we look at banks that only factor 50% of that it has a real effect on how much we can borrow. My plan is to contact the banks that take 100% of my commission in their equation to get the best offer.

Thanks a lot in advance guys

kingstreet

This will depend on loan to value and how long you can prove.

Under 75% and two years P60s and you would have little issue, for example.