My sister is looking into buying her own home but is on a mixture of salary plus commission.
Currently her income is split 50/50 basic wage/commission. 25k/25k
Shes earned these levels in the same role for the same company for the last 10 years. She has looked at previous P60's and her income has risen from 20k basic/20k commission to 25k/25k in that time.
How would a lender (as a rule of thumb) consider the commission? My step-dad seems to recall when he applied for his most recent mortgage the lender would only take 50% of the commission into account?
Shes looking at a 95% mortgage, mainly due to circumstance Don't know if this impacts the commission questions below, but better to add to much than too little information.
She realises all lenders will have different criteria, but just wondering if...
A. Theres a 'norm' for commission payments ie Only 50% will be taken into account or usually its between x and y %
B. Theres any lenders that look upon commission more favourably than others?
TIA
Anna
Currently her income is split 50/50 basic wage/commission. 25k/25k
Shes earned these levels in the same role for the same company for the last 10 years. She has looked at previous P60's and her income has risen from 20k basic/20k commission to 25k/25k in that time.
How would a lender (as a rule of thumb) consider the commission? My step-dad seems to recall when he applied for his most recent mortgage the lender would only take 50% of the commission into account?
Shes looking at a 95% mortgage, mainly due to circumstance Don't know if this impacts the commission questions below, but better to add to much than too little information.
She realises all lenders will have different criteria, but just wondering if...
A. Theres a 'norm' for commission payments ie Only 50% will be taken into account or usually its between x and y %
B. Theres any lenders that look upon commission more favourably than others?
TIA
Anna