mortgage application

buyhouse2015

Hi Everyone,
I have been a silent reader of this forum for a long time. and really appreciate the efforts people make here in helping others.

I hope someone can help me on resolving my query.

I made an application in the end of jan with nationwide, but was declined.

Now i am looking to make another application with santander. My only concern is when i filled the nationwide application form i said in the application form the bonus value as zero as i didnt know whether we will get bonus this year or not. Since our bonus is not guaranteed and it depends on the company performance. But just found today when i got my payslip and pay that this year we got bonus from the company.
Now i am thinking of making application with santander next week, please let me know if i declare the bonus in this application or not ? and will it have any impact on this application since i didnt declare any bonus in my nationwide application as i didnt knew at that time whether we will get bonus or not.

Just to let you know i have been working in this company for last 9 years and in the first 5 years, as company was doing very well so we got bonus every year. But last 4 years we didnt get any bonus as company didnt do well and after 4 years we got it this year.

Please advice if i declare the bonus in this application will it affect the application as i didnt declare the bonus in the first application with nationawide. All the application data remains the same. Only change is the bonus

Thrugelmir

But last 4 years we didnt get any bonus as company didnt do well and after 4 years we got it this year.

If the bonus is discretionary then treat it as such. Rather than tinker around the edges. What's far more important is to find out why your application was declined.

Any ideas?

DpchMd

I think you should use a broker. They can match your income style to the most suitable lender.

Please don't take this the wrong way, but your written English is very poor so there is a risk you could make mistakes or typos. A broker will ensure that your application is accurate.

betmunch

declaring the bonus how you want could lead to problems down the line.
you need to know how the lender treats the bonus and declare it how they want to get an accurate result.

If you do not know how the lender you are using treats bonus you need to either find out or use someone who does know.

Carrying on with doing it how you think, rather than what the lender wants, will likely lead to a "why has *lender* reduced what they will lend me" thread.

kingstreet

Do you need the bonus to make the mortgage amount you are requesting affordable?

If not, leave it off.

There's no point complicating a case with extra income evidence requirements if you don't have to.

I agree with the others. A broker should calculate what is affordable for you and with whom, so you can see the options open to you.

FWIW Abbey/Santander has started to cap lending for FTBs, so be careful if you are one.

amnblog

You should not declare bonuses you cannot prove. It only complicates matters. Totally unnecessary if the value is not needed for affordability.

Santander will only count 50% of the bonus anyway.

You don't say why you were declined by Nationwide but if I had a previous credit score decline, Santander would not be first on my list.

Don't shoot yourself in the foot by setting yourself up for another decline.

buyhouse2015

amnblog wrote: »

You should not declare bonuses you cannot prove. It only complicates matters. Totally unnecessary if the value is not needed for affordability.

Santander will only count 50% of the bonus anyway.

You don't say why you were declined by Nationwide but if I had a previous credit score decline, Santander would not be first on my list.

Don't shoot yourself in the foot by setting yourself up for another decline.

It was declined by the underwriters. Credit score is fine. and i can still afford the repayment without having to show the bonus.

So best would be for me is not to mention any bonus. Thanks for your advice.

BTW a general question nothing to do with the application. If asked to prove bonus, what documents they normally ask to prove the bonus?
As i have the bonus payslip (bonus is paid along side with my normal pay) , employement contract which says we will get bonus but that will be subject to company performance. and if needed i can provide the employer letter.
I am not going to show the bonus but just as an enquiry i asked the above question

Steph1993

I'm wondering if anyone could help me as I am in a similar situation.
We have found a property that we would like to put an offer in but I'm a bit confused as to what I put for salary on the mortgage application.

Basicly my salary consists of £X Basic £X on call (which is written into my contract) and £X bonus every month.

On my payslip it does not get broke down.
So on my partners payslip his gets broke down for example;
Basic Pay
Attendance Allowance
Overtime Pay

Mine just has one line with the gross amount which includes basic, on call and bonus because of this my wage is different every month give or take a few hundred.

So do I average the year out using my payslips and use that figure for the mortgage application?
Or declare the bonus and on call?
The only issue I've got declaring the bonus and on call is my bonus is set on how many shifts we get that week (I work for a driving agency) and on call all depends on the rota some months I can do 1 week others I can do 3 week so it's not a set figure I can tell them it all depends.

Any help would be much appreciated.

ACG

You need to either speak to a broker or speak to the lender.
Different lenders have different ways of viewing it.

I am doing a mortgage at the minute for someone who gets a basic and a lot of commission.
Lender 1) Will average out the last 6 months payslips and use 100% of that. (using an income of £47k)
Lender 2) Will use 100% of his basic plus 100% of the last 2 P60s averaged out. (using an income of £45k)
Lender 3) Will use 100% of basic, plus 50% of his commission. (Using an income of £30k).

It is all about finding the best one for your circumstances.