question regarding mortgage pls

samb1992

Hey all
wonder if you can help,

so a friend of mine has found a place and is literally due to exchange and move in anytime now , however come across a last min hurdle , the basic (salary) alone doesn't meet the requirements needed for the mortgage however including the commissions he gets which started to get paid last month and is guaranteed it does, however the bank wont accept this.

is there a way round this ? guarantor? or a letter from employer guaranteeing commission or perhaps just increasing his basic salary instead of comms ?

i get that the above would work 3 months from now if we had the payslips showing the increased basic/guranteed comms however in an ideal world thats not an option as will loose the flat !

Thanks
Sam

Caz3121

do they have a broker? possibly a different lender may treat the commission differently, broker should advise

samb1992

yeah i believe so i just thought it was an unwritten rule there was no way round it ?

they only look at your past & not your future

kingstreet

Some lenders may accept a copy of a contract or employer's reference if the commission level is guaranteed regardless of performance.

A time-limited guarantee is unlikely to be accepted.

Normally, commission is taken from latest three months payslips and averaged over a year, then 50% or thereabouts is taken in affordability calculations.

samb1992

okay thanks Kingstreet so "Some lenders may accept a copy of a contract or employer's reference if the commission level is guaranteed regardless of performance." could be possible without having previous 3 month statements?

kingstreet

Yes, if the commission is guaranteed, not performance-based and not time-limited as I stated.