First time buyer on commision

[d8mok]

A while back i started a thread asking several questions about ownership and deposits as im looking to buy my first house with my girlfriend but with my deposit.

Things have moved along since then and we've found a house we both love. We spoke to a mortgage advisor ages ago and he assuered us we would have no problem but now it appears i have.

Im commission based (with £10k basic), and lots of lenders wont take this into account. Halifax apparently do, so ive booked an appointment for friday with them , but who else does?

Ive never borrowed a penny so no past leding either apart from a credit card that i pay off staright away and a pushbike on 0% over 6 months as it was offered within the deal i got.

My LTV is 63.5% max, or maybe 62% if i can get a bit off the price hes said.

My girlfiend isnt putting any depsoit so a solicter will draw up a letter stating that the deposit is mine. She will however be on the mortgage, but she starts a new job as a teacher in september so they need to lend to her on that basis too. She has a contract which states permanent job etc and salary.

Any help is appreciated in pointing me lenders direction that would consider us without a crippling rate.

Oh and my girl is spanish if that makes any difference but living here with bank accounts/ new car financed etc

thanks

[Myc]

When I was in your position I took a letter from my employer confirming that my On Target Earnings were £XX,XXX and that I was on target to earn this amount.

If you work in sales you'll find your employer very keen to help you get loaded down with a big mortgage as it means you'll be the bloke staying late every night to make sure you earn enough to repay the mortgage.

My advice would be to try and meet your fixed outgoings such as mortgage and utilities from your basic as your commission isn't guaranteed and a couple of lean months could put you in real difficulty.

[d8mok]

thanks for taking time to comment. Yes exactly my thoughts reference being hungry to sell. But im fairly like that anyway as im greedy and like shiny toys. Ive managed to get the mortgage, bills and food down to where i can pay it all from my basic so my girlfiends money and my commision is all extra in our eyes.

[jdw1234]

With HSBC the variable part of my salary (bonus) was taken as the mean average over the past 3 years divided by 2.

So, say you got bonus of 2011 = £10K, 2012 = £15K, 2013 = £10K they would take into account £5.8k.

This was the case when I did my mortgage last year. My LTV was a bit lower than yours at 50%, but I dont think that matters.

[Sarnie]

d8mok said:

A while back i started a thread asking several questions about ownership and deposits as im looking to buy my first house with my girlfriend but with my deposit.

Things have moved along since then and we've found a house we both love. We spoke to a mortgage advisor ages ago and he assuered us we would have no problem but now it appears i have.

Im commission based (with £10k basic), and lots of lenders wont take this into account. Halifax apparently do, so ive booked an appointment for friday with them , but who else does?

Ive never borrowed a penny so no past leding either apart from a credit card that i pay off staright away and a pushbike on 0% over 6 months as it was offered within the deal i got.

My LTV is 63.5% max, or maybe 62% if i can get a bit off the price hes said.

My girlfiend isnt putting any depsoit so a solicter will draw up a letter stating that the deposit is mine. She will however be on the mortgage, but she starts a new job as a teacher in september so they need to lend to her on that basis too. She has a contract which states permanent job etc and salary.

Any help is appreciated in pointing me lenders direction that would consider us without a crippling rate.

Oh and my girl is spanish if that makes any difference but living here with bank accounts/ new car financed etc

thanks

I can help with this but you'd need to provide a bit more information first.

I'd need to know initially;

How much are you wanting to borrow?
Commission earnings over the last 6 months?
How long have you been with your company?
What figures does your 2013 P60 say?
What salary will your GF be earning from September?

Feel free to PM me

[d8mok]

Pm on way

[d8mok]

Just in case anyone else is in a similair position, Nationwide have come up best for us as the rate is good and they take a decent percentage of commision into consideration. We are going to do a 4 year fixed at 2.59% with some other benefits too. Mortgage is agreed in principle and appointment to sort it is this week coming. Fingers crossed all goes well.

[Sarnie]

d8mok said:

Just in case anyone else is in a similair position, Nationwide have come up best for us as the rate is good and they take a decent percentage of commision into consideration. We are going to do a 4 year fixed at 2.59% with some other benefits too. Mortgage is agreed in principle and appointment to sort it is this week coming. Fingers crossed all goes well.

Did you do the AIP yourself, direct?

The only reason I'm posting at all, is because based on the information you provided me, when entered into their affordability calculator, it leaves you well short of the amount you require. I just don't want you to potentially waste your time.....

[d8mok]

Hi, yeh I called into store , ran through everything with their advisor and got the agreement in principle. I'm going on Friday to take my paperwork and sign etc. hope this makes sense

[Sarnie]

Good luck with it, just not sure whats changed as if you enter your details into here, the figure returned is well below what you need;

http://www.nationwide-intermediary.co.uk/calculato...

[d8mok]

Hi, I've just input the details and I get double what we need?

The nationwide has said that we can have it no problem in terms of affordability and then she did the credit checks which came back good.

Thanks for looking into it for us.

[Sarnie]

d8mok said:

Hi, I've just input the details and I get double what we need?

The nationwide has said that we can have it no problem in terms of affordability and then she did the credit checks which came back good.

Thanks for looking into it for us.

Double??

Are you using income other than your basic and commission?

[d8mok]

No, I definetly put commission in the correct box for sure.

But I didn't do the application , the lady from nationwide did it for me and knows exactly our situation so fingers crossed should all be ok.

Halifax also said yes to affordability but we went no further with them as they cost more a month.

Thanks

[Sarnie]

d8mok said:

No, I definetly put commission in the correct box for sure.

But I didn't do the application , the lady from nationwide did it for me and knows exactly our situation so fingers crossed should all be ok.

Halifax also said yes to affordability but we went no further with them as they cost more a month.

Thanks

I'm not sure what you or she has done, but using only your income and putting it in the correct boxes returns a figure of £66k.

Are you including your girlfriends income from the job she hasn't started yet?

My concern, for you, is that you've told her your total earnings and that she has lumped it all as basic income. However, even if you do that on the affordability calculator it only returns a figure of £114k, certainly not the double you stated. Once the underwriters see the pay slips and realise it's not all basic, they will reduce the borrowing amount. I say this, as I've seen it done.

Just trying to save you some potential heartache, thats all. And also anyone else who thinks Nationwide will take 100% of commission, as they won't.

Edited by Sarnie on Sunday 4th August 20:48

[d8mok]

Hi,

I've told her exactly the same details as yourself. I've been 100% honest so if its wrong ive got no control over that. They are fully aware of my commission amounts, and my girlfriend not starting her job until September. She told me that they do lots of commission based people nowadays.


We put all the details through and the next morning I received my AIP. If they have done it wrong or it all falls though, Halifax seemed ok with it all too but cost more a month. This was also in store too.

They've asked for my last P60, last payslip, and her contract along with normal other proofs of ID and I have a appointment on Friday so will update once that's happened.

[Sarnie]

d8mok said:

Hi,

I've told her exactly the same details as yourself. I've been 100% honest so if its wrong ive got no control over that. They are fully aware of my commission amounts, and my girlfriend not starting her job until September. She told me that they do lots of commission based people nowadays.


We put all the details through and the next morning I received my AIP. If they have done it wrong or it all falls though, Halifax seemed ok with it all too but cost more a month. This was also in store too.

They've asked for my last P60, last payslip, and her contract along with normal other proofs of ID and I have a appointment on Friday so will update once that's happened.

Ok, so you've used the salary from your girlfriends job that she doesn't start until September, which explains things a little.

Nationwide won't issue the mortgage offer until your girlfriend has provided at least one, maybe two pay slips and corresponding bank statements, which puts you at the end of September, maybe October.

Be aware of the fees too. Good luck!

[d8mok]

Yeh of course it includes my girlfriends wage. I never stated it didnt. Like I said they are fully aware she hasn't started yet and have requested just her contract. I asked about payslips and they said no need , just mine are needed.

If I had done it online they maybe I could be blamed but since I left it to the experts it should be ok I hope. I've got it all confirmed by email but ill know more on Friday. I've done as much as I can , and the payments are where we wanted to be.

The fees are £499 for first time buyers , with free basic valuation and £250 cash back.

My back up is Halifax , who said the same as nationwide but it was a less attractive deal.

If it doesn't go we'll , the seller has said he is willing to wait until we have my girlfriends payslip which opens up a lot more lenders.

[Sarnie]

d8mok said:

Yeh of course it includes my girlfriends wage. I never stated it didnt. Like I said they are fully aware she hasn't started yet and have requested just her contract. I asked about payslips and they said no need , just mine are needed.

If I had done it online they maybe I could be blamed but since I left it to the experts it should be ok I hope. I've got it all confirmed by email but ill know more on Friday. I've done as much as I can , and the payments are where we wanted to be.

The fees are £499 for first time buyers , with free basic valuation and £250 cash back.

My back up is Halifax , who said the same as nationwide but it was a less attractive deal.

If it doesn't go we'll , the seller has said he is willing to wait until we have my girlfriends payslip which opens up a lot more lenders.

I'm just trying to help you out here mate, having done dozens of mortgages this year with Nationwide. They will request the contract, but won't issue the mortgage offer until she has started her job and can then provide the income evidence they require via pay slips and bank statements. Which, if you are going to wait that long, then you may as well wait until then a secure a better deal.

What we discussed was sourcing you a lender on your income alone to secure the mortgage and the property, in case the vendor wouldn't wait till October/November time to complete.

Also, don't assume that anyone who works at a lender is an expert, I'm not sure how some of them tie their shoe laces let alone hold down a job!

[d8mok]

No worries mate. Yeh I realise you are trying to help but unfortunately I don't have any other answers until Friday so ill see what happens. Ill not be pleased if the nationwide has told me incorrect info as I've asked several times these questions.

There is two outcomes, one is that its all ok, and the other is that we wait until payslip arrives. We don't want to pay a premium on the payments that's all I know. If it all goes wrong ill wait another year, as that was the plan anyway but a house came along we both liked hence this situation.

Thanks

[Sarnie]

Dom,

Just to let you know that I have spoken to Nationwide today and they have said that they will accept the contract, without the need for pay slips, on the basis that an employers reference confirms the details of the contract and that there is no CRB checks outstanding or probationary periods.