Mortgage broker - ask me anything

K_S

ka86ftb said:

Hi to you helpful lot...
I've had a mortgage offer issued by Santander and I am wondering if applying for the SEISS grant would affect my mortgage at completion?
(Self employed : Business has been affected due to less clients since Nov 2020)

@ka86ftb If Santander "refreshes" the application (for example, asks for latest business bank statements, etc) at some point between now and completion, and sees that trading is noticeably impacted, they could pull the offer. Taking a SEISS grant may also point towards the same. It's impossible to say if they will ask for fresh information or not before completion as there are no hard and fast rules about it. I must add here that if you business has been materially affected, you are expected to let your broker/lender know.

If we're talking about a purchase here, the worst case scenario is that you exchange, and then Santander asks for fresh information prior to releasing funds, ending in the offer being pulled and you being unable to get an alternate lender. So if you do decide to take the risk of not informing the lender, you should at least try to aim for same day exchange-completion if at all possible.

I hope that helps answer your question to some extent.

innis

Hello!
I have heard that none of the mortgage providers take commissions and bonuses into affordability calculation. Is that true? I'm in sales role, been here for 10 years, 50% of my income is from commission I haven't been furloughed and my income hasn't gone down in the last year. On bank websites it looks like they do take commission into account but I hear whispers around that the background calculators don't. Could you advise if you have heard anything?
Thank you!

K_S

innis said:

Hello!
I have heard that none of the mortgage providers take commissions and bonuses into affordability calculation. Is that true? I'm in sales role, been here for 10 years, 50% of my income is from commission I haven't been furloughed and my income hasn't gone down in the last year. On bank websites it looks like they do take commission into account but I hear whispers around that the background calculators don't. Could you advise if you have heard anything?
Thank you!

@innis It isn't correct to say that "none of the mortgage providers take commissions and bonuses into affordability calculation".

Yes, qualifying criteria for commission (and any kind of non-guaranteed variable pay) has tightened consdierably since Covid, however there still are lenders who will consider commission that can be evidenced to be consistent and over a reasonable period of time.

rachtom84

Hi we are due to complete on a vacant property this Friday 15th (no chain either side) but still haven't had confirmation from bank to release funds in time for completion. Solicitor instructed them on Friday and said exchange would take place once funds are drawn down, how long does it normally take? Worried incase something comes up that will affect them withdrawing the mortgage now.. (we've had to apply twice for a mortgage during the purchase) Nothing has changed significantly income wise.

Please tell me I am worrying for no reason! 

col81

Looking for a trustworthy broker anyone any ideas? for a re mortgage

Mazza48

I would try London and Country (L & C) - I have used them and found them to be great and free.  
https://www.landc.co.uk/ 

innis

K_S said:

innis said:

Hello!
I have heard that none of the mortgage providers take commissions and bonuses into affordability calculation. Is that true? I'm in sales role, been here for 10 years, 50% of my income is from commission I haven't been furloughed and my income hasn't gone down in the last year. On bank websites it looks like they do take commission into account but I hear whispers around that the background calculators don't. Could you advise if you have heard anything?
Thank you!

@innis It isn't correct to say that "none of the mortgage providers take commissions and bonuses into affordability calculation".

Yes, qualifying criteria for commission (and any kind of non-guaranteed variable pay) has tightened consdierably since Covid, however there still are lenders who will consider commission that can be evidenced to be consistent and over a reasonable period of time.

Thank you! I looked on the NatWest, HSBC and few other big banks' website, those that historically were the best ones for variable income. Right now their calculators still take commission into account. Is it true that these particular vendors have changed their criteria but not updated the calculator?

K_S

innis said:

K_S said:

innis said:

Hello!
I have heard that none of the mortgage providers take commissions and bonuses into affordability calculation. Is that true? I'm in sales role, been here for 10 years, 50% of my income is from commission I haven't been furloughed and my income hasn't gone down in the last year. On bank websites it looks like they do take commission into account but I hear whispers around that the background calculators don't. Could you advise if you have heard anything?
Thank you!

@innis It isn't correct to say that "none of the mortgage providers take commissions and bonuses into affordability calculation".

Yes, qualifying criteria for commission (and any kind of non-guaranteed variable pay) has tightened consdierably since Covid, however there still are lenders who will consider commission that can be evidenced to be consistent and over a reasonable period of time.

Thank you! I looked on the NatWest, HSBC and few other big banks' website, those that historically were the best ones for variable income. Right now their calculators still take commission into account. Is it true that these particular vendors have changed their criteria but not updated the calculator?

@innis Lots of lenders will "accept commission" in their affordability calculators. The relevant details (how they annualise it and what % will feed into affordability) are what it is that they expect to see to be able to consider it.

For example, Natwest will consider the annualised figure of your last 3 months commission if the same can be supported by a P60 or 6 months payslips. Other lenders will have other ways of looking at it.

So what you put in the calculator will be counted, but whether you meet the conditions for it to be considered will depend on the specifics. I hope that makes sense.

For most lenders, you can google "xxx for intermediaries" and browse through the lending criteria to see how they treat commission.

MFWannabe

col81 said:

Looking for a trustworthy broker anyone any ideas? for a re mortgage

There are brokers on this site; states in their signature 
they’re not allowed to contact you but you can contact them 

innis

K_S said:

innis said:

K_S said:

innis said:

Hello!
I have heard that none of the mortgage providers take commissions and bonuses into affordability calculation. Is that true? I'm in sales role, been here for 10 years, 50% of my income is from commission I haven't been furloughed and my income hasn't gone down in the last year. On bank websites it looks like they do take commission into account but I hear whispers around that the background calculators don't. Could you advise if you have heard anything?
Thank you!

@innis It isn't correct to say that "none of the mortgage providers take commissions and bonuses into affordability calculation".

Yes, qualifying criteria for commission (and any kind of non-guaranteed variable pay) has tightened consdierably since Covid, however there still are lenders who will consider commission that can be evidenced to be consistent and over a reasonable period of time.

Thank you! I looked on the NatWest, HSBC and few other big banks' website, those that historically were the best ones for variable income. Right now their calculators still take commission into account. Is it true that these particular vendors have changed their criteria but not updated the calculator?

@innis Lots of lenders will "accept commission" in their affordability calculators. The relevant details (how they annualise it and what % will feed into affordability) are what it is that they expect to see to be able to consider it.

For example, Natwest will consider the annualised figure of your last 3 months commission if the same can be supported by a P60 or 6 months payslips. Other lenders will have other ways of looking at it.

So what you put in the calculator will be counted, but whether you meet the conditions for it to be considered will depend on the specifics. I hope that makes sense.

For most lenders, you can google "xxx for intermediaries" and browse through the lending criteria to see how they treat commission.

Thank you. That's what I thought (not much different to what it was 2-3-4 years ago). I was today told that due to pandemic even big lenders aren't counting commission so I got worried I wasn't now out! 
I can support commission with P60s and payslips and I always saw bigger lenders (like NatWest as an example) to be the most "commission friendly"  
Really I just want to make sure that when I "window shop" and look for a property I am not hugely out of my price range (which is why I normally check affordability calculators).