ONS reports over £36 billion paid in bonuses
Total bonus payments received across the whole economy during the financial year April 2012 to March 2013 were £36.9 billion, an increase of 1% compared with the same period in 2011/12. This equates to an average of around £1,400 per employee, according to data released by the Office for National Statistics.
Of the £36.9 billion paid in bonuses in 2012/13, £13.3 billion was paid in the finance and insurance industry, virtually unchanged from the previous financial year. Male managers' average extra payments were £6,442 last year compared with £3,029 for women. The pay gap between men and women is exacerbated by bonus payments given to male managers which are on average double those for women, says the Chartered Management Institute (CMI).
Aaron Strutt, product manager at Trinity Financial, says: "Most mortgage lenders are happy to accept bonus income as part of the mortgage application although some can be particularly tough. Mortgage lenders will typically accept half of your bonus, although this does depend on when it is paid monthly or annually. One lender accepts 60% of a monthly, quarterly or annual bonus, although the lender will require proof in the form of payslips or a latest P60."
Investec says that they will lend up to 100% of bonus providing applicants have a track record of receiving the income.
August 23, 2013
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