Mortgage Query

ACG

Im after getting a mortgage. I work for a large company, i seem to be having an issue getting a mortgage that takes account of my bonus. The best i can find it about 50% of my bonus...unless i get a letter confirming my bonuses are guarenteed which is just crazy as it would form part of my basic otherwise.

Thanks for any help.

property.advert

If a bonus is dependent upon anything other than you going to work then how can it be used to assess the affordability of your proposed mortgage ?

Answer = it can't.

Not sure about now but previously, prior to 2007/8, there was a website which listed most borrowers and their criteria. I know some took none of the bonus into consideration, some averaged it over X years and some allowed all of it. Perhaps you can find that site ? or else delve through individual lender's websites for the criteria.

GemBlueTopaz1984

Hi ACG,

If the bonus isn't guaranteed then why should the bank take it into account with regards to a mortgage, What if you were not to get the bonus and you had taken on a higher mortgage based on that bonus, could you still realistically still afford the mortgage payments. I work in a job where I get a basic salary plus commission, my commission comes out to alot more than salary each year but I wouldn't have wanted my mortgage payments to have depended on me getting that amount,
my mortgage was 3 x my basic and my partners salary which is not much more than my basic he also get regular overtime that adds 10K per year to his wage but we didn't put that in either. We know that on my basic and his we can comfortly afford our house, everthing else extra we get goes into savings and on nice things for the house.

ACG

I agree to an extent, but i earn the same bonus year in year out - it varies slightly but in the main were talking pretty much the same.

Its been like this for 3 years, i can also see what business is coming in and what i can expect for the next 2-4 months...admittedly not long term but i have plenty of notice if im going to be down on money.

ACG

The thing is though, i know what i can afford. I wouldnt be applying for it if i thought i would struggle.

You have people with an income similar to mine but with kids, loans, credit cards etc and if they tick that its being paid off with the mortgage they can get a similar amount. Im currently paying a mortgage 1.5 times the amount im after now. Its a joint mortgage but the house is up for sale and i make the payments myself. I know i can afford it. Just seems difficult to find a mortgage company prepared to lend to me.