Mortgages & Variable Income (OTE Based)
Discussion
Hi, just looking for a quick check. My role is Sales orientated, and I'm on a 70/30 pay plan (30% being variable based on my performace 
). I generally make on or above my OTE, but just wondering how Mortgage companies look at these types of pay to calculate mortgage offerings. Of course, I am considering that my affordability should be based on my guaranteed income in light of business changes, but as a rule of thumb, if you aren't getting any of the Sales compensation, you ain't doing your job right!
Is it simply a case of proof of income using P60s, payslips and / or bank statements as proof, or does the method in which affordability calculations vary in these sorts of situations?
Thanks!
). I generally make on or above my OTE, but just wondering how Mortgage companies look at these types of pay to calculate mortgage offerings. Of course, I am considering that my affordability should be based on my guaranteed income in light of business changes, but as a rule of thumb, if you aren't getting any of the Sales compensation, you ain't doing your job right!Is it simply a case of proof of income using P60s, payslips and / or bank statements as proof, or does the method in which affordability calculations vary in these sorts of situations?
Thanks!
Lenders will only take into account what you can actually evidence, no lender will lend against OTE figures...most lenders will request your last three months pay slips, add up the total commission paid, divide it by three to get an average and then times it by 12 to get an annual figure.
They will then take that total annual figure and apply a weighting eg some lenders will take 100% of that figure, 60% some and 50% others.
They will then take that total annual figure and apply a weighting eg some lenders will take 100% of that figure, 60% some and 50% others.
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