Santander 'extra income' what does it mean?

trebor800

Hi
I am looking to buy a place and looking at how much I can borrow. I have used the mortgage calculator from Santander and along with asking how much I earn, it also asks if I get any extra income each year.

Does anyone know whether this would be extra income from working only, i.e. bonuses, second jobs etc or would it take into account payments from my Parent (as since they have retired they give us kids a set amount each year)

Thanks

CloudCuckooLand

Unless you want to bring the payments from your parents to the attention of HMRC and pay tax on them, you would probably be best leaving them as gifts.

Other forms of income include those that show up on your P11D.
"If you apply for a loan or mortgage, banks and building societies will accept a P11D as proof of extra income."
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10013512

http://www.themortgageworks.co.uk/content/lendingcriteria/
Definition of income

Employed: 100% of the basic salary, weighting allowance, mortgage subsidy, housing allowance, car allowance, 50% of overtime, bonus and commission and permanent secondary employment.


Self-employed: Based on net profit average of last two years. The net profit shall be divided by the proportion that the borrower owns of the business. Projection of net profit is not acceptable. Company Directors - salary + dividends.


Leeds Building Society have criteria;

Section 5 - Definition of Income
Primary Income
Primary income is defined as basic salary, plus the following:
Large town allowance.
Rent allowance.
Mortgage subsidy (100%).

Other Income

Other income is defined as:
Commission.
Bonus. *
Overtime. *
Shift Allowances.
Working Family Tax Credit
Rental Income**.
Car Allowance.
Maintenance Payments.

When income is largely made up of bonus/commission or has a high overtime content, the
maximum amount of other income to consider is no more than 100% of basic salary. Other
income is also taken into account as follows:
Income Type Amount Condition
Overtime/Bonus/Shift 100% If guaranteed.
Allowance 50% * If regular.
Commission 50% If regular/guaranteed.
Working Family Tax Credit 50%

Mortgage Subsidy/Rent Allowance 100% If guaranteed.

London/Large Town Allowance 100% (up to)
Car Allowance 100% (up to)

Maintenance Payments 50%