Mortgages for sales person with low basic income and high commission who want to take hundred percent of their commission income towards a mortgage.
If you work ‘in Sales’ and have a low basic salary you are likely to have experienced difficulties when asking a mortgage lender to factor in your bonus or commission when determining how much you can borrow so getting advice from an expert on low basic income and high commission mortgages is vital. This is even more prevalent due to a recent directive from the Financial Conduct Authority on mortgage lenders to assess affordability not only on the ‘here and now’ (and now taking into past history) but also in terms of sustainability throughout the mortgage term.
As with all directives it is down to the discretion of the interpretation of the individual banks and building societies when incorporating their own rule set in their lending policy and some tend to understand that variable income is a fact of life more than others.
At Niche Advice we fall into the understanding camp. In fact we would go as far to say more often than not that high commission and bonus customers are normally consistently amongst the highest paid employees in the land and I have helped many investment bankers achieve the level of borrowing they require to secure their homes, please read on to find out more.
How do the standard high street lenders treat bonuses and commission?
High street lenders start point will be to establish a past track record. To do this they will expect you to have stayed with the same employer for a number of years and evidence the annual figures by P60s (with a year-on-year rising trend).
Secondly, they will look at the year-to-date figure on your latest payslip. They also have a strong preference for bonuses and commission paid regularly on a monthly basis.
Then if they see a consistent pattern of variable income payments they will rather crudely slash the figure in half and add this to your basic salary before applying their affordability assessment or income multiple.
The result is often disappointment as you are effectively being treated as someone who earns a fraction of what you do.
Niche Advice solution for clients with low basic income and high commission income
As a ‘whole of the market’ mortgage broker we understand which lenders to select and work with to get the best responses for applicants in the sales sector. The lenders do not consistent of the variety found on the high street but include specialist centralised ‘intermediary focused’ lenders and private banks.
We will work on your behalf to negotiate the best possible terms. For example we have lenders at our disposal that will take a 100% of bonuses and work off your last year’s P60 figure rather than applying an average.
Mortgage for sales professionals:
- Up to 5 ½ times income joint income
- 100% percent of commission taken into account
- Can work of simply last year’s bonus figure
- Minor adverse credit accepted
Therefore if you are looking to borrow above the norm why not give us a try?
If you are on a low basic income and high commission and need mortgage advice please contact Niche Advice on T: 020 7993 2044 or alternatively complete the online enquiry form on this page.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.