NatWest taking 50% of bonus income for mortgage purposes

by Aaron Strutt

Jun 01 2015

NatWest for Intermediaries has increased the amount of bonus income it takes into consideration for mortgage purposes following a review of its lending policy.

The bank will now take up to 50% of any annual or bi-annual bonus payments and this is up from the previously minimal amount of 25%. 

Aaron Strutt, product manager at Trinity Financial, says: “For annual discretionary bonuses NatWest will consider an average of the last two years (cash element only) and use 50% of it in their affordability calculations.

“If there has been a sharp decline in the latest year the mortgage underwriter may use 50% of the most recent year’s bonus, although they will not look to use deferred bonuses.”

Regular bonus payments

NatWest can accept up to 100% of regular bonus payments if they are paid monthly or quarterly, although this will be at the underwriter’s discretion.

The bank is likely to ask applicants for their latest P60s and six months payslips to show a track record of receiving the payments.

For help to secure a bonus income mortgage, call Trinity on 020 7016 0790.