Coventry starts accepting bonus income for mortgage purposes
Coventry Building Society has improved its lending criteria and started accepting bonus income for mortgage affordability purposes.
The lender will now take 50% of the average of the latest two years’ annual bonus or 50% of the most recent years figure if it is lower.
Aaron Strutt, product manager at Trinity Financial, says: “Coventry hasn’t been keen to take any annual bonuses into account so this is quite a big change for the building society.
“Many of the other lenders are happy to accept bonus income, although they typically require proof it has been paid over the last few years.
“Halifax for Intermediaries is one of the most generous banks when it comes to lending against bonus income and they will potentially accept up to 60% of it.”
Trinity has access to one lender will to take up to 100% of any regular bonus income into account, although borrowers will need to provide a track record of receiving the payments.
If you receive a bonus and would like help to secure a mortgage, call Trinity on 020 7016 0790.