The Sunday Times - Big boost for homebuyers as lenders relax bonus criteria
Lenders are relaxing their positions on bonuses when assessing income criteria for mortgage applicants.
Since the credit crunch, many lenders have focused solely, or largely, on a borrower’s salary. Now Nationwide, the third-largest mortgage lender, has changed its stance on bonuses as well as income from commission and overtime.
Previously, the building society would consider only up to 50% of the extra amount as part of a borrower’s income. It has removed this cap and can, in theory, factor in the full amount — although the way this is applied will vary case by case.
Aaron Strutt of Trinity Financial, told The Sunday Times: “Many lenders have interpreted the mortgage market review rules differently and now they are looking to make slight adjustments. If you are applying to Nationwide and you receive a bonus you may well be able to borrow more.”
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