Mortgage earnings/commission question

[CS27]

After separating from my partner I need to buy on my own for the first time. My earnings are made up of salary around 40% and commission 60%. My bank (Nationwide) will only take commission earned in the past 3 months and I haven't had any paid since August. Does anyone know which banks currently accept earnings from the past 12 months rather than just 3?

[The Rotrex Kid]

CS27 said:

After separating from my partner I need to buy on my own for the first time. My earnings are made up of salary around 40% and commission 60%. My bank (Nationwide) will only take commission earned in the past 3 months and I haven't had any paid since August. Does anyone know which banks currently accept earnings from the past 12 months rather than just 3?

Maybe worth speaking to a broker (sarnie?)

My pay is similar, albeit more frequent, I provided 2 years worth of payslips/P60's to back it up.

[Funk]

Definitely worth speaking to a broker; find one with recommendations from friends/family, not via a website that only allows positive comments.

I'm in the same boat as you - in fact nearly identical. I also have great months and quiet months which makes the 'quarterly' approach moot. My broker has found me a very good deal from a lender that will look at the longer-term picture and overall YTD/annualised earnings which paint a far more realistic picture of my income.

Edited by Funk on Friday 25th February 13:53

[Sarnie]

CS27 said:

After separating from my partner I need to buy on my own for the first time. My earnings are made up of salary around 40% and commission 60%. My bank (Nationwide) will only take commission earned in the past 3 months and I haven't had any paid since August. Does anyone know which banks currently accept earnings from the past 12 months rather than just 3?

Some lenders are rigid in their assessment of variable pay.

Some, like Nationwide, will simply average and then annualise the commission received across the last 3 months pay slips, some will be the last six months.

Some will be a bit more pragmatic and look at your Year-To-Date Earnings in line with what your last few years P60's look like, as not all applicants that are paid commission are paid in consistent monthly amounts.

Other variables will come into play also, such as LTV.......affordability.......the reason why you've not been paid commission since August etc etc........happy to chat if you want to drop me a line!