As with any form of income different lenders assess commission, bonuses and overtime differently. All these types of income are ‘non – guaranteed’, which is why some lenders are more cautious in their assessments than others.
As with all criteria this is a variable, and it is important to speak to a broker to establish your position and obtain a more definitive budget from a variety of lenders as opposed to checking with just your bank or a high street lender who may not provide a large enough mortgage or who’s deals may be less competitive.
Whatever the additional form of income you get paid. Contact us to get an informed perspective on the level of borrowing you are eligible for, and how much this will cost. We’ve assisted many clients with varying forms of income and the differences between what the various lenders will offer in terms of mortgage amounts are vast.
Common in many industries, particularly in the finance sectors of London. But assessed very differently depending on who you speak to, some lenders will just need you to have received one bonus within the last 12 months to consider using this income to form part of your pay, others may require a 2 – 3 year track record before these can be taken into consideration.
Furthermore, some lenders will accept 100% of bonus income and use it to help their affordability calculations and income multiples, whereas other lenders may only use 50% of the bonus income.
Overtime / Monthly Commission
Payable for different reasons but these monthly additional payments are typically treated the same by lenders.
Some lenders will use 100% of this income, other lenders may only use 50% of this income for their affordability purposes. Most lenders would take an average of the last 3 – 6 monthly payslips when assessing additional monthly income.
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