Mortgage lenders potentially taking up to 100% of bonus income

by Aaron Strutt

Jan 09 2015

Over the last few months a host of banks and building societies have eased their acceptance criteria for borrowers in receipt of bonus income.

This has led to more lenders offering to take up to 100% of bonus income into consideration for a mortgage.

Some lenders still have stricter criteria than others, for example HSBC often ask applicants to provide three years history and then they take an average. Other banks are not so tough.

Trinity has access to a host of lenders with generous bonus criteria, for example:

• Kensington, the broker-only lender, will consider lending up to 100% of any bonus income providing the client has a track record of receiving the payments.

• Skipton for Intermediaries, they will typically consider 50% of bonus income, although they will lend up to 100% of this income if there is a track record of the payments.

• Coventry Building Society recently improved their lending policy and they will lend up to 50% of bonus income.   

• Nationwide for Intermediaries takes an average of any bonus and will potentially lend up to 100% of the payment. They improved their criteria late last year.

• NatWest for Intermediaries can accept up to 100% of regular bonus payments if they are paid monthly or quarterly. But this is at the underwriter’s discretion. For annual discretionary bonuses they will consider an average of the last two years payments and use 50% of them.

Aaron Strutt, product manager at Trinity Financial, says: “As the lenders look to provide more mortgages this year they have realised they need to ease some of their lending policies.

“With so much competition between the lenders it is certainly worth making sure you have found the best rate available to you.”

If you receive a bonus and you would like help to secure a leading mortgage, call Trinity on 020 7016 0790 or complete our enquiry form. 

Updated 22/06/2015