Mortgage application question

[alistair1234]

Couple of questions about applying for a mortgage if anyone can assist.

My earnings are heavily made up of monthly commission, generally how far back do banks go back? 3 months? 6 months?

I have a company car, Tesla Model 3 long range, can I add that in the extra income part, like I would with a car allowance?

Thanks

[MOMACC]

My only advice is to use a broker rather than going direct.

[sawman]

Sounds like you need to speak to PH’s very own mortgage man- sarnie

[vulture1]

My bank looked at the salary going in not the actual wage slip.

[Piersman2]

sawman said:

Sounds like you need to speak to PH’s very own mortgage man- sarnie

This. If you're starting from scratch as you sound you are, don't waste your time working out what each potential provider wants. Go to Sarnie (or other suitable broker ) , it's like using a insurance price comparison website rather than phoning each insurance company in turn.

[Welshbeef]

I needed
P60
3 months pay slips
3-6 months bank statements
Bonus - evidence going back at least 3 years proving the average level.
I take cash for car so that’s salary and fortunately only have its running costs to deal with. You cannot put in the cash equivalent of a company car you have - you’d need to ditch said company car and show a long (3-6 months) period of time not having a company car.
Banks don’t take “I will get rid of company car or I will clear credit card debt” statements at all. They need the credit file updated and payroll and bank statements showing the change.

[GT03ROB]

When I did it last 2 years ago I sat down with the banks mortgage person. I'd was moving house so needed a new deal from them.

We went through all the questions, Came to salary so quoted a figure, she looked at what went into my account & said that doesn't quite tie-up, so she asked if there were bonuses she should take into account. I just said "its all a bit complicated". Showed her my most recent payslip, tried to explain it to her, she said "you're right. Its too complicated. Lets just put this number in. It will still work for what you want to borrow"

[Killer2005]

For commission you'd generally want 2yr history, plus latest 3 months payslips. Some lenders wouldn't use a commission figure higher than your basic so you would potentially need advise on which lenders may be best for you. Sarnie would be your man for that.

Can you evidence the extra income for the car? It could be used but depends on what evidence you have of it.

[vulture1]

GT03ROB said:

When I did it last 2 years ago I sat down with the banks mortgage person. I'd was moving house so needed a new deal from them.

We went through all the questions, Came to salary so quoted a figure, she looked at what went into my account & said that doesn't quite tie-up, so she asked if there were bonuses she should take into account. I just said "its all a bit complicated". Showed her my most recent payslip, tried to explain it to her, she said "you're right. Its too complicated. Lets just put this number in. It will still work for what you want to borrow"

I thought all that stopped 5- 10 years ago

[GT03ROB]

vulture1 said:

GT03ROB said:

When I did it last 2 years ago I sat down with the banks mortgage person. I'd was moving house so needed a new deal from them.

We went through all the questions, Came to salary so quoted a figure, she looked at what went into my account & said that doesn't quite tie-up, so she asked if there were bonuses she should take into account. I just said "its all a bit complicated". Showed her my most recent payslip, tried to explain it to her, she said "you're right. Its too complicated. Lets just put this number in. It will still work for what you want to borrow"

I thought all that stopped 5- 10 years ago

Nope…. They just need to pass the red face test…..as long as they can see the decision isn’t marginal I get the impression they are not too fussed.

[Caddyshack]

Santander will generally use the last 3 payslips as if that was a full 12 months as long as the year to date stacks up.

As the other people in this thread have said - use a broker. I am one and Sarnie is one or take a friends recommendation.

[Welshbeef]

What’s the going multiplier these days - know it’s now affordability but general rule of thumb 5 or 6 is it?

[Caddyshack]

Welshbeef said:

What’s the going multiplier these days - know it’s now affordability but general rule of thumb 5 or 6 is it?

About 5.5 is max but a lot of lenders reserve that for over 100k incomes. Also commission or bonus doesn’t always get the the same multiple I.e. it might be 5.5 x 60%

[CharlesElliott]

If you Google "<lender name> lending criteria" you should be able to find a (long) document that will explain in great detail what will be needed in nearly every scenario. The requirements vary between lenders.