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Mortgage Brokers

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  • 14-01-2008 4:23pm
    #1
    Fusion251
    Registered Users Posts: 1,045 ✭✭✭


    Hey,

    I'm working in sales at the moment and it's heavily commission based which means the basic salary looks quite low and doesn't really show how much I earn. Are there different places that take this into consideration when going for a mortgage and how long back would I have to go in terms of wage slips etc to show a steady earning?

    Any thoughts?

    Cheers
    Fusion


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    #2
    Victor
    Registered Users Posts: 78,400 ✭✭✭✭Victor


    They will want a P60 and 3-6 months payslips. They will take commission into account at some level.


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    #3
    themuckyone
    Closed Accounts Posts: 1 ✭themuckyone


    Ya i'm in a similar position at the moment.
    According to my broker some banks will only count about 1/4 of commission earned. This is making a huge differance to amount that i can borrow. He basically told me that i would be better off earning 35k a year (basic) rather than 54k on commission.... not good for commission based employees. Let me know if you hear anyone offering better rates!


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    #4
    uzami
    Closed Accounts Posts: 507 ✭✭✭uzami


    if you can show consistency of earnings- eg commission being paid over a 2 or 3 year period hitting a certian level then some lenders will take 100% of the commission


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    #5
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    uzami wrote: »
    if you can show consistency of earnings- eg commission being paid over a 2 or 3 year period hitting a certian level then some lenders will take 100% of the commission
    Yep. There aren't that many hard and fast rules with the banks. Their main concern is their ability to pay. If you can show a solid €54k paycheque including commission, then they may only use around 20% as wiggle room (i.e. assume your basic is €45k).

    However, if your paycheques are inconsistent or show that you have busy and quiet periods, then they'll probably take your normal salary as your average take-home during a quiet period - after all, these are the periods during which you're going to be struggling, so your ability to pay during these periods is really key. They couldn't care less that you have €5k extra one month, if you're going miss a payment the next and they can't assume that you'll budget correctly.


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