A large proportion of our clients receive some sort of bonus, and many of the mortgage applications we deal with include bonus income, vested stock or another form of non-core salary remuneration. As a result, we have a huge amount of experience arranging the best terms in these circumstances, regardless of the form, regularity or history of the bonus income being received.
WHAT DO I NEED TO KNOW ABOUT MORTGAGES USING BONUS INCOME?
Generally speaking, the main lenders will allow up to 50% of any regular bonus income to be included in your affordability calculation. This bonus will need to be paid in cash and shown on your payslip and P45. In addition, there will need to be a discernible track record of the bonus being paid – usually over a number of years, and from the same firm. This is very restrictive and, in our view, not particularly fair.
HOW CAN ENNESS HELP WITH MORTGAGES USING BONUS INCOME?
We know every lender willing to consider bonus income in the UK and are skilled at presenting our clients’ cases in a favourable light. Many of the lenders we do regular business with are prepared to take much more of your bonus income into account, and will take a more sympathetic and flexible approach to your application.
Some of the things we can do include:
- Using up to 100% of any cash bonus payment
- Including vested or deferred bonus as part of the application
- Using your bonus even if it is your first one, or you have recently moved firms
- Using your bonus income as a repayment vehicle on an interest-only mortgage
- Arranging ‘bullet repayments’ which may facilitate a higher loan to value or better interest rate
Of course, what we can do for you depends on your circumstances and what you want to achieve. Our advisers will quickly get to the crux of your requirements and let you know exactly what is possible.