Can bonus income be included in the mortgage

verytricky69

am trying to figure out how much i can borrow for a mortgage. Half of my income is from my quarterly bonus'.

Do banks -these days- lend on the basis of salary and bonus or just basic salary?

If its just salary then I wont even be able to afford the place that I live in now! (which has just gone under offer!)

Pete111

Are these bonuses contractual or discretionary/performance related?

If it's the former then you should be ok but its quite possible they won't lend on the latter.

They certainly used to but my wife and I were not allowed to include previous discretionary bonuses as income when we remortgaged with First Direct 9 months ago (though these restrictions may have since eased)

I guess you need to ask the question of the bank/broker asap

<sebb>

I was told by two mortgage companies they would take into account half my target bonus, but then I only been in the bonus pool at work for a year so only had evidence of one years worth of bonus and it was not guaranteed.

mattdragon2

The bank told me I they could only use half of my bonus but I had to have worked for longer than 1 and half years at the current place I work at for it to be taken into consideration.

poppysarah

If it's a bonus you'll have been saving it up for years?