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Original poster

Looking to get an 80k mortgage but...................

14 replies

SleeplessInTheStaceym11House · 29/07/2007 21:01

..........my dh's basic sallary is only 16k but with commision that goes up to 26k. can commision count towards our mortgage?

we've had a mortgage and been paying rent for jsut over a year now (on part buy part rent) and the repayments on the new mortgage would be less than we're paying now, will they take that into account???

OP posts:
pinkteddy · 29/07/2007 21:05

Not sure about the rent but would have thought the commission would count if you can prove that it is usual for your dh to earn £26K. Has he been in the job a couple of years? Can you prove that he has earnt around that amount for the last few years? Will his employer write a letter stating that although basic salary is £16K dh would usually be expected to earn approx £26K with commission pa. HTH

Gobbledigook · 29/07/2007 21:10

Commission does count if you've got a few years P60s to show for it.

Most of dh's salary is commission and it was taken into account for our mortgage.

jo25 · 29/07/2007 21:14

How about looking into self cert mortgage? it has risks of course but we have one and have had for many years due to dh being self employed. Basically you don't have to show proof of earnigs, there is more to it than that obvisously but it is basically done on value of property. good luck.

LilyLoo · 29/07/2007 21:24

it changes from lender to lender soem won't, some half , some take it all into consideration. My dp a mortgage advisor give him a ring he can help if you want advice
firstforfinance.net/ it all free

Cappuccino · 29/07/2007 21:27

I remember when I rang up for ours they took dh's income down and then instead of my income they took my tax credits into account because they couldn't cope with the complexity of my self employment

so are you getting any tax credits?

Original poster
SleeplessInTheStaceym11House · 29/07/2007 22:20

hi sorry i dissappeared the baby woke up, i just love teething!

dh has a few years p60's but only problem is this job will be the same job but for a different district of the same company if that makes sense. a self certificate mortgage sounds like something to take into account!

LilyLou i might just give him a ring tomorrow, thanks!

OP posts:
Original poster
SleeplessInTheStaceym11House · 29/07/2007 22:24

capp, i do get tax credits but not a lot (about 100 a month, 2 children, thats ctc, we dont get wtc.)

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fairysnuff · 29/07/2007 23:08

We would like to get a mortgage for £135k, but my mortgage advisor told me that all we could get was £95k. He only included half of DH's overtime, said that is all they take into account. He regularily gets about 50hrs a month!
I flicked onto that website Lillyloo but it said:

There may be a fee for mortgage advice the precise amount will depend upon your circumstances but we estimate it will be £195

But you said it would be free??
Would that fee be what they would add if you went with their option, maybe?

Original poster
SleeplessInTheStaceym11House · 30/07/2007 17:09

fairysnuff, i thought the same thing about the link!

OP posts:
LilyLoo · 30/07/2007 17:47

hi no he doesn't charge, just mention you saw it on here it's up to you entirely. They have to put that on the link for the site as there are some exceptions where they have to charge but in the majority of cases he doesn't. Ask when you ring. It is an independant service so they get paid by whichever lender you go with and they can check the whole market. I not trying to mislead you

fairysnuff · 30/07/2007 22:52

oh no! I didn't think you were, but I thought I would check before I called anyone

I imagined it would be one of those things they have to write, but with you saying it was free, I was confused.

Will try to call tommorrow.
Cheers for the info.

BigGitDad · 30/07/2007 23:11

Asking for £135k on an income of £26k is quite a big stretch, over 5 times your income. Have a look at Cheltenham and Gloucester, Nationwide and Northern Rock as they have quite large income multiples.
This is a guide of what Nationwide will lend www.nationwide.co.uk/Intermediaries/_calculators/borrownew.asp
Tax credits can be taken into account as well, but bear in mind if you have any other credit commitments such as car loans or credit cards that will have an adverse impact as well.
Self certification is an option but the interest rate will be a little higher.
It may well be you need to get in touch with an underwriter who can assess the case individually, especially if you will be paying less than you are now. Maybe consider the Abbey as they have quite flexible underwriters.

Skribble · 30/07/2007 23:18

Do shop around some banks wouldn't consider my seasonal wage others would, some counted DH's bonus others didn't. made a big difference.

Original poster
SleeplessInTheStaceym11House · 31/07/2007 12:02

biggitdad - i was after £80-100k for a 26k salary, you're right about shopping around tho thanks!

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