mortgages and bonus'

lozza_2

i have only been in my job about 10 months but would like to raise some cash to do up my house, now does anybody know if there are any companies out there that will use my bonus/commission when working out how much money i can have on a re-mortgage? There is a big difference between my basic and what i actually earn, and find it quite frustrating that banks say that my basic salary does not even entitle me to what i owe at the moment, even tho i understand the reasoning behind it!!!!!!

Reaper

You'd be better off asking this question on the mortgages board instead of credit cards.

It's a long time since I had to worry about getting a bonus but I seem to remember some companies take a part of it into account if you can show that it is a regular and expected part of your package. You will probably need a letter from your employers saying that some sort of bonus is pretty much guarenteed and what the average payouts are.

I'm sure one of the mortgage brokers on the mortgage board can give a more definitive answer.

Xbigman

Most companies will take bonus/overtime into account but normally want you to have a few years in the job to show you can actually get the money on a regular basis. With only 10 months in your current job you will be unlikely to get a competitive rate anyway so I'd wait at least a year when it will become a lot easier.
Regards


X

Martinslovechild

I believe that the position is as follows:-

As long as you can prove that bonuses or overtime are received regularly (i.e. show them your payslips for the last 12 months), then lenders will generally allow half the bonus/overtime amount to be considered for lending purposes.

Lenders don't allow the full amount because bonuses are not a guaranteed salary component and could, in theory, be withdrawn by your employer unless your Terms And Conditions state that the amounts are guaranteed.