Some mortgage lenders happy to accept bonus income
Some mortgage lenders are much happier to accept bonus income as part of a mortgage application than others.
Many lenders will take around 50% of a bonus into consideration when they work out how much you can borrow, while some will use 100% of regular bonuses.
Halifax for Intermediaries is one of the more generous lenders as the bank is willing to take larger bonuses into account, while Nationwide for Intermediaries can also take 100% of the average amount.
Aaron Strutt, product director at Trinity Financial, says: “Many of our clients receive a bonus as part of their salary, and we regularly use it to help them secure larger mortgage loans. Applications will be easier to place if borrowers have a track record of reviving bonus payments.”
- Halifax for Intermediaries may accept up to 100% of a bonus although it may be limited to the same amount as the basic salary if it is lower. They will ask for proof of a track record of receiving payment if lower.
- Coventry Building Society takes a 50% average of the latest two years’ annual bonus or 50% of the most recent year’s annual bonus figure.
- HSBC for Intermediaries: where overtime, bonuses and other allowances are shown to be regular, a maximum of 60% of the average amount received can be considered guaranteed income.
- Metro Bank uses 60% of a cash bonus, commission, and overtime from the latest or current year.
- Kensington for Intermediaries and Investec Private Bank may accept up to 100% of bonus income, providing there is a track record of payments. This is higher than many other lenders in the mortgage market.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or complete our enquiry form.
Some lenders will accept foreign income and bonuses paid in foreign income for mortgage affordability purposes. However, not all banks and building societies issue foreign-income mortgages.
These currencies UK lenders consider include: Euro, Australian Dollar, Bulgarian Lev, Canadian Dollar, Croatian Kuna, Czech Koruna, Danish Krone, Hungarian Forint, Japanese Yen, New Zealand Dollar, Norwegian Krone, Polish Zloty, Romanian Leu, Singapore Dollar, Swedish Krona, Swiss Franc and United States Dollar.
Mortgage lenders tend to take a "haircut" and take a per centage off of the income to cover themselves in case of currency fluctuations.
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