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Mortgage application - commision, bonus, overtime

  • 11-06-2016 12:35pm
    #1
    PSFarrell
    Registered Users, Registered Users 2 Posts: 62 ✭✭


    HI All

    I am currently in the process of applying for a mortgage as a first time buyer. I currently earn about a third of my salary in bonus, commission and overtime payments. None of this income is guaranteed by my employer but for several years this income has been consistent. Alot of the applications I see online only consider basic income. Has anyone here been in a similar situation? I know that the rules allow for 3.5 times income but can this include the above kind of payments.

    Any advice would be appreciated


Comments

  • #2
    iainBB
    Registered Users, Registered Users 2 Posts: 460 ✭✭iainBB


    PSFarrell wrote: »
    HI All

    I am currently in the process of applying for a mortgage as a first time buyer. I currently earn about a third of my salary in bonus, commission and overtime payments. None of this income is guaranteed by my employer but for several years this income has been consistent. Alot of the applications I see online only consider basic income. Has anyone here been in a similar situation? I know that the rules allow for 3.5 times income but can this include the above kind of payments.

    Any advice would be appreciated

    Use those bonuses as deposit and build up your deposit over 10% . you will not be able to use bonus (ad-hoc ) as sustainable income. Bank will not see it as so.

    The reason companies pay like that is the can reduce wages at any point without issue. Companies do this in bad times to cut costs. Quinn insurance paid a lot of wages with bonuses.


  • #3
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    The answer to your question is that once you can prove that the income is consistent most lenders will take in a certain percentage of it. You will need to provide the last 3 years P60's. They may take 50% into consideration, it depends on the lender however all of them will take a certain % into consideration however they would prefer that you do not need to rely on such income to repay your mortgage.

    Best of luck
    PSFarrell wrote: »
    HI All

    I am currently in the process of applying for a mortgage as a first time buyer. I currently earn about a third of my salary in bonus, commission and overtime payments. None of this income is guaranteed by my employer but for several years this income has been consistent. Alot of the applications I see online only consider basic income. Has anyone here been in a similar situation? I know that the rules allow for 3.5 times income but can this include the above kind of payments.

    Any advice would be appreciated


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