Mortgage move

Aqua1985

Looking at potentially moving house March - June 2023.

 Current situation - Currently with a sub prime lender and now me and my partner both have jobs which pay circa 50k with 20k base and 30k commission (both been in role 2-3 years) 

credit profile - My bad credit falls off by close of next year (ccj July and 2 x defaults Nov and Dec) but what mainstream  lenders (if any) who will accept commission role in affordability calculation potentially 6-9 months before the bad stuff falls off?

deposit - likely 15% of what we want to buy

I have a mortgage broker which I will use but just planning ahead looking at rates and products etc. Sun prime wise pepper and Kensington look the best option. 

Any thoughts welcome 

ACG

Rates are going to change a lot in the next 10-12 months. I think we might also see some tightening of lenders criteria and/or credit scoring in that time.

Its not really possible to do it the way you are wanting as fitting criteria is very different to passing the credit check. 

Some lenders will accept commission, but only up to the value of your base wage, some lenders will accept all of it - but what is all of it? The last 3 payslips, the last 6, 12? It differs from lender to lender. Also what you will start to see over the coming weeks and months is affordability tightens up, especially with lenders who use ONS figures. 

One lender started to use the new ONS figures about 2 weeks ago. As the cost of living increases, you will start to see affordability calculators lending less. Its not all doom and gloom obviously, but I think you need to see where the market is in 10 months as I think it will be very different to where we are at the minute. 

K_S

@aqua1985 I would suggest that it's far too early to be making elaborate plans, simply because there are a lot of things that can change in the interim - with regard to criteria, affordability, product availability, etc. It might be better to have a chat with your broker around December or early in the new year.

With regard to your specific question about commission, there are mainstream lenders who will may a view and remodel affordability if the case is strong. For example I had a recent case where the client had an income structure that was majority commission and the lender was happy to remodel the affordability at DIP stage so that they used the low LTV income multiple cap rather than the actual LTV, so that the case would fit. In another instance the lender was willing to consider the client's bonus even though it only had a one year track record.

I'm not saying that your case would necessarily be afforded the same flexibility with respect to published criteria, but just that fitting affordability and consideration of variable income streams can often be very case-to-case so hard to predict.

You are doing the right thing by using a broker and as long as they are a good experienced one, you can be fairly confident in that you are getting the most appropriate options available for you at the time.