Nationwide not counting commission - Any idea how long this is likely to remain?

Benjy79

Hi all.

We have just had an offer accepted on a house so I started to look at my mortgage situation. We are with Nationwide and have been for many years, we are very happy with them and we are within a deal on our current mortgage so had been planning to just port our mortgage over. I have just seen though that Nationwide are not currently considering commission at all as part of their affordability calculations and I was just wondering if anyone has any insight into whether this is likely to be for the long term or reversed soon as they have just done with their LTV restrictions?

I work in sales and commission has always been a very good part of my income. I am lucky in the fact that this hasn't been impacted at all throughout the current situation, in fact I have earned more than usual over the last few months. Without including commission their affordability calculators just about allow me to borrow what I want although its right at the top and so I am mindful that with a full application its always a possibility this may move a bit in either direction. If they even counted 10% of my commission I would be fine and with multiple pay slips to prove I have continued to earn this I would have hoped they would factor it in.

So yeah does anyone have any thoughts on whether Nationwide may change this policy soon? 

[Deleted User]

They havent really reversed their ltv restrictions. They have brought back acrippled version of 90% mortgages that is a sub par version of what other lenders are bringing back. 
Given this hesitance to come back to the 90% market in a menaingful way,  I expect them to remain cautious with their underwriting.    We dont tend to get more than a few days advance notice of any policy changes and nothing on the immediaite horizon. However, they could change that tomorrow. 

All i am saying to my clients is that if you want to move just now you take whatever mortgage is avaialable at whatever terms you can get.  If the ideal mortgage comes available at a later date you can switch back to that but at least youve got a mortgage of some sorts to proceed with 

ERC is annoying but there is nothing you can do about it. Either buy now and compromise on the mortgage, or wait until they come back to lending properly and maybe lose the property 
There are no easy solutions to anything at the moment 

Benjy79

Thanks for the reply. I appreciate that its a bit of a how long is a piece of string question. 

As I said we may be able to get enough anyway its just right at the top of what their website calculator says and I am aware that this could move when a human looks at things.

One other question. When the calculator is asking about outgoings I have two HP payments that have very little time left to run. One of them has 3 months as we speak now so will be gone by the time we make the move and the other has just over 6 months. At the moment I am including them in the calculators but could I make Nationwide aware they will be gone very soon and this would make a difference? The Credit card box says not to include balances that will be cleared before the mortgage starts but it doesn't say anything like that for HP?

[Deleted User]

As well as considering your client's income for affordability, we'll also need to consider any regular outgoings they are committed to. These include:

Credit commitments:

• Outstanding credit card balances, including store cards, mail order and budget accounts
• Outstanding mortgage balances, including mortgages held abroad (see Clients with Additional Properties above for details of when mortgages are treated as self-financing)
• Monthly payments for personal loans and hire purchases with more than 6 months to run
• Deferred purchase agreements with more than 6 months to run, including current or future payments

Doesnt need to be included.  If its PCP it will need to be included as there is no way of them calculating the time left to run based on the outstanding balance and monthly payment on credit file.