Mortgage lenders accepting one-years' bonus history
Trinity Financial has access to a range of banks and building societies accepting bonus and commission payments for mortgage affordability purposes.
One building society is accepting the latest year's bonus if it is below £75,000. If it is above £75,000, the lender will require two years history of the bonus being paid.
Another bank will take up to 60% of the latest years bonus payment and it offers larger mortgage loans.
Aaron Strutt, product director at Trinity Financial, says: “Many of the lenders are happy to take bonus income, but they have very different acceptance criteria. Some will take 50% of a bonus, and they expect proof of two or even three years of payments.
“If your lender is not offering you enough money, or you are looking for a larger mortgage loan, you may get a better deal for a different bank.”
Commission and bonus acceptance criteria:
HSBC for Intermediaries: Where overtime and bonuses are shown to be regular, a maximum of 50% of the average of the last two years can be considered as guaranteed income. If the bonus cannot be confirmed by P60s, the bank will request the relevant payslips or a letter from their employer.
Halifax for Intermediaries: The bank can accept up to 60% of bonus income. If the bonus is larger than the salary, it is capped at 60%.
NatWest for Intermediaries: The bank can consider up to 100% of the cash element of monthly bonuses providing there is a six-month track record. The income cannot be used as part of the minimum income of £100,000 for interest-only mortgages.
For discretionary bonuses, the bank will consider an average of the last two years cash bonus and use 50% of it for mortgage affordability purposes. If there has been a sharp decline in the latest year, it is likely 50% of the most recent year’s bonus will be used. The bank will not consider deferred bonuses.
Nationwide for Intermediaries: For annual bonuses and commission – the building society can accept up to 100% of the last two consecutive annual payslips from the current employer showing payment.
Metro Bank for Intermediaries: The bank can accept up to 100% of cash bonuses and commission paid over the last three years.
Cash bonuses and commission must not exceed 100% of the basic salary. The bank will not allow 100% if there is a downward variance of 20% over the three-year period.
Kensington: The bank can take 50% of bonus income when it is regularly paid and classed as sustainable. It can also consider up to 100% of bonus income for applicants with a strong credit profile.
For help to secure a commission or bonus income mortgage, call Trinity Financial on 020 7016 0790.
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
