Some lenders using 100% of overtime and commission in mortgage affordability calculations
If you are working as a sales manager selling luxury goods, tech or medical equipment, you may well receive a larger percentage of your salary through a bonus or commission.
Mortgage lenders accept overtime as part of a mortgage application, but the percentage may be limited depending if it is guaranteed, regular or fluctuating income.
Most mortgage lenders will take 50 or 60 per cent of overtime although some lenders are much more generous.
Trinity has access to one large building society taking up to 100% of commission income. When the borrower is paid monthly or four weekly it will want evidence of the latest three payslips. The lender will request for annual payslips for quarterly, half-yearly and annual bonuses with commission.
Coventry for Intermediaries will consider using 100% of any gross guaranteed income of 50% for regular and fluctuating income. HSBC has also recently changed its policy and will consider using up to 100% of guaranteed overtime, bonus or commission confirmed on the customers last two years P60s.
Aaron Strutt, product director at Trinity Financial, says: “The lenders have different policies for overtime payments but if you have a track record of receiving the income it should be possible to borrow up to five times salary depending on your job.
“Some of our clients are paid a small basic salary and a higher amount of commission. We recently arranged a mortgage for an estate agent using 100% of his monthly commission and his basic salary.”
Call Trinity Financial on 020 7016 0790 to secure a commission mortgage or book a consultation
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