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 and acceptance criteria often varies quite substantially.
Many of the lenders will take around 50% of a bonus into consideration, although some of them are more conservative. Halifax is one of the more generous lenders as they are often willing to take larger bonuses into account.
Aaron Strutt, product manager 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.
“The lender we approach for our clients really does depend on their financial circumstances. If they rely heavily on their bonus and they have a track record of the payments applicants will be easier to place.”
- Halifax may accept up to 60% 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 payments.
- Coventry Building Society will not take annual bonuses into consideration, although they may take more regular bonuses or commission payments into account.
- HSBC may require up to three years proof of bonuses and then they will only take 50% of the average into account.
- Metro Bank accepts up to 50% of average bonus payments, although they are typically averaged over the last three years.
- 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 much higher than the rest of the market.
If you receive a bonus and you would like help to secure a mortgage, call Trinity on 020 7016 0790 or complete our enquiry form.