Are you looking to apply for a mortgage using bonus income? Bonus income can be significant, so borrowers often look to use their bonus when calculating affordability for their mortgage. This can have an enormous impact on how much you can borrow.
If we take ‘4.5’ as the average figure lenders will use to multiply your salary by in order to calculate how much they will lend you, even an additional £20,000 of bonus income could make a significant difference for a first time buyer or young professional in London. Many Enness clients could benefit from working with a lender who will look generously on bonus income, as many high net worth individuals work in industries which pay large bonuses.
Unfortunately, some lenders will not consider taking all of your bonus income into account—especially if you have only recently started receiving bonuses. Our product of the week therefore comes from a lender who takes a favourable view of bonus income, even if you only have a limited history.
If you have 2 years’ history, this lender will take an average of your last two bonuses. However, if you only have one year of bonus history, this lender will take 50% of your latest P60 as income. This product comes with a very competitive 2-year fixed of 1.82%, which is excellent offering considering what a limited number of lenders will consider offering terms based on bonus income without long term evidence.
Available for mortgages up to 80% loan to value (LTV), this is an ideal product for successful young professionals in London who are looking to purchase their first property.
- 2-year fixed rate
- 80% LTV
Of course, if you are looking for a mortgage using bonus income above £1million, a private bank may be your best port of call. Whatever your situation is, it’s likely we have a relationship with a lender who can assist you. If you would like an individual consultation on how we can make your bonus work best for you when applying for a mortgage, please get in touch below and I would be delighted to advise you further.