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Mortgage Advisor & Director
Many salespeople make a successful living, but they often face challenges when applying for a mortgage, not least because a bulk of their income is commission. Here, you will learn what mortgage options you have as a salesperson, how to prove your income, and how we can help you get the best deal.
Are there specific mortgages for salespeople?
No. Salespeople can apply for the same range of mortgages as those in other professions but there are mortgage lenders who are better equipped than others to cater for them.
As a salesperson, you may be concerned that a mortgage lender won't take into account your full earnings, including bonuses and commission.
If bonuses and commission make up a large portion of your salary, it can be challenging to demonstrate to a mainstream lender that you can keep up with monthly repayments.
But the good news is that there are lenders who specialise in the following types of borrower:
- Those who earn most of their income from bonuses and commission
- Salespeople who want to declare 100% of their bonus income and a basic salary
- Self-employed salespeople
- Salesperson on temporary contracts
Our brokers have deep working relationships with these lenders and may be able to help you secure an exclusive deal that takes all of your income into account.
Find a better mortgage deal on Teito
Why it can be challenging for salespeople to get a mortgage
Many mainstream lenders will be looking for a stable, monthly income from permanent employment.
If you work in sales, you are likely to earn a basic salary and receive bonuses and commission based on meeting sales targets or other Key Performance Indicators (KPIs).
Some lenders will not consider income received from bonuses and commission as part of their affordability calculations, meaning the mortgage offered may not meet your requirements. In the worst case, your application may be declined.
If this sounds familiar, fear not. There are mortgage providers who appreciate that not everyone has an ordinary, standard monthly income. By accepting bonuses and commission into the mortgage affordability calculation, your mortgage offer will be tailored to your needs. What's more, our brokers can find you the best rates available on your new mortgage.
How mortgage lenders will assess your income
Some lenders cap the commission income they will accept into the affordability calculation to 100% of your basic wage.
For salespeople who earn the majority of their income through incentivised bonuses and commission, this can cause an issue.
For example, if your basic salary is £15,000 per annum, but you then earn an additional £25,000 on top in incentivised income, some lenders will cap your annual income at £30,000. However, there are a few lenders who will accept the full amount, so in this example, your salary would be counted as £40,000.
Will how often you’re paid make a difference?
All lenders are different. Some lenders will only accept monthly payments into the calculation, some will accept weekly, quarterly, and some will even accept annual payments.
Lenders will be concerned about how you can meet consistent monthly mortgage repayments if you do not meet your incentive targets.
Track record in commission-based earnings
Many lenders will expect you to demonstrate consistently earned commission revenue for a minimum of two to three years before they are satisfied. There are a few lenders who will consider commission earnings over 12 months, and there is a minority who will accept applications with less than 12 months.
How much can you borrow?
Another point to consider is the amount a mortgage provider will be willing to lend against your salary.
You can expect a minimum of 4-4.5 times salary, with some rising to five or even six times your annual income, in some cases.
It may be that you consider a lender willing to lend a higher ratio even though they don't account for your full salary, rather than a lender who will account for your full salary but offer a lower multiplication. Our team can help you with this.
To get a rough idea of your maximum borrowing, enter your annual earnings, including any bonuses and commission, into our affordability calculator below:
Getting a mortgage with bad credit
There are many reasons why salespeople may have bad credit on your record, ranging from a few missed payments to IVAs or bankruptcy.
While it may be more of a challenge for salespeople to get a mortgage with bad credit, it is possible.
The lender will be concerned with the age and severity of the adverse credit. A few tips for improving your credit rating.
- Understand the factors that are affecting your credit rating by registering an account with the main agencies.
- Use credit sensibly and make repayments.
- Apply to make corrections to any inaccuracies.
Please read our guide to bad credit mortgages for more information.
Can I get a buy-to-let mortgage with commission and bonus income?
It may be easier than you think to get a mortgage on a buy-to-let property with a non-conventional income.
This is because the property itself is generating a regular income to make mortgage repayments. As someone with a predominantly bonus and commission-based income considering a buy-to-let investment, there are a few points to note:
- You may find that some lenders will insist on a clean credit history
- Experience as a landlord will help
- If the buy-to-let property is a HMO, you may need a specialist lender.
- It may be more difficult for over 75s
- Some lenders will insist on a minimum salary (around £25k is standard)
Why choose Teito for your mortgage needs?
There are brokers on our team who specialise in mortgages for salespeople. They can help you declare all of your income and may even be able to secure an exclusive deal for you.
Here are just some of the reasons people in sales choose us for their mortgage:
- Our brokers specialise in bonus and commission income
- They can access exclusive deals for people in your profession
- We are 5-star rated on leading review websites
- You can secure a mortgage in principle in minutes
Ready to compare rates for free and take advantage of a free, no-obligation chat with a mortgage broker who specialises in sales people? Get started here.
FAQs
The best lenders for people who work in sales are generally the ones who allow borrowers to declare 100% of any bonuses and commission income they have. These lenders include:
- Barclays
- Precise Mortgages
- Santander
- Bluestone Mortgages
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.