Boosting Income Multiples With Commission

As said in the previous ‘Tip’, buying a home for some people, no matter the amount of desire, might require a bit of planning over time, but the sooner the planning is identified and implemented, the closer you will be to doing what you want. As said in the ‘overtime’ Tip, income is the most effective way to improve mortgage affordability, as lenders typically will lend 4.5x - 5.5x total annual income. Not all income is however, treated equally. Lenders need to trust that the money is sustainable (you can keep earning it) and provable (it is taxed and documented). In the ‘Boosting Income’ series, we talk about the jobs and income strategies that carry the most weight with UK lenders, along with the "rules" for getting them accepted, and this is the second of them. Commission & Bonuses - these tend to be offered in Sales roles, recruitment, or performance-based office jobs. Lender View: Lenders usually look at your last 2 years of bonus history and take an average. The Rule: They generally count 50% of this average toward your affordability.
 If your commission earning capacity is performance related, this will also give you an opportunity to improve performance and be the best you can be. If so, you never know who may be watching, and might ‘head hunt’ you into a higher paying job 😉. Seriously, aim to be the best - you have nothing to lose.