Best mortgage for commission based earnings

[Audis5b9]

Can anyone recommend a lender or broker who can help me with a remortgage?

I have a basic salary and 70% of my income comes from commission. I have had this job for around 8 years, so plenty of evidence to suggest my income is relatively stable despite it being related to sales.

My current lender, Barclays, will only consider 50% of the value of the commission I make, which significantly impacts what they will lend me.

Any suggestions welcome.

[nicklaus1988]

I'm in a similar position to you and we've just gone through Santander, was told they were one of the better ones.

[dalenorth]

Sarnie is the resident mortgage broker on here, I’m sure he will be along to help shortly

[Sarnie]

Audis5b9 said:

Can anyone recommend a lender or broker who can help me with a remortgage?

I have a basic salary and 70% of my income comes from commission. I have had this job for around 8 years, so plenty of evidence to suggest my income is relatively stable despite it being related to sales.

My current lender, Barclays, will only consider 50% of the value of the commission I make, which significantly impacts what they will lend me.

Any suggestions welcome.

This is a difficult area currently as lot of lenders are not lending against variable income at all.

Some are at 30% currently, some 50% and some 60%.......a couple are higher.......

If you are paid monthly, they will average what you've earnt in the last three months and annualise it.....so it depend on those numbers in line with what loan amount you actually need to get to......

[Audis5b9]

Sarnie said:

This is a difficult area currently as lot of lenders are not lending against variable income at all.

Some are at 30% currently, some 50% and some 60%.......a couple are higher.......

If you are paid monthly, they will average what you've earnt in the last three months and annualise it.....so it depend on those numbers in line with what loan amount you actually need to get to......

Would you mind telling me who the 'couple are higher' are?

Yes paid monthly. Currently my last three months would do the trick... but cannot guarantee that will be the case at the time I need to apply.

Are they allowed to take a sensible approach as look at historic data past three months, or it is a computer says no situation?

[Sarnie]

Audis5b9 said:

Would you mind telling me who the 'couple are higher' are?

Yes paid monthly. Currently my last three months would do the trick... but cannot guarantee that will be the case at the time I need to apply.

Are they allowed to take a sensible approach as look at historic data past three months, or it is a computer says no situation?

Given the impact of CV19 they will look at the historic figures for reference but they won't lend against them, they will lend against whatever your most recent pay slips show.........

Feel free to drop me a mail if you want a chat about this in more detail........

[Audis5b9]

Sarnie said:

Given the impact of CV19 they will look at the historic figures for reference but they won't lend against them, they will lend against whatever your most recent pay slips show.........

Feel free to drop me a mail if you want a chat about this in more detail........

Ironically we are doing better than ever due to Covid, so should put in my application asap.

Email sent.

Edited by Audis5b9 on Wednesday 19th August 19:12