How Much Can I Borrow

Harper123

First of all I have tried all the online calculators but I have a query regarding whether I can use my bonus and the online calculators are a bit simplistic and generic so I wanted some further advice.

My current salary is £32,000 and every year I get a bonus of £3325 grosse which means a net bonus of £2500 goes into my bank account once a year. My bonus isn't written into my contract but I have the payslips for the last 2 years that that show I got it. My P60 for the last year will show I earned £33,250 over the last year as for part of the year I was on a lower salary than I am on now.

Which figure am I able to use for mortgage purposes? I'm trying to achieve £155,000 over 30 years. At 80% Ltv.

I have no other debt, loans or balances on credit cards. Have no dependants. And my credit history is good.

HappyMJ

If it's not in your contract or even in your employee handbook it's going to be very difficult to prove that you will get that unconditionally every year.

I would seek the assistance of a broker to see what lenders accept what income. If I were applying without the assistance of a broker I'd use the P60 income as last years income and your current base salary for future income.

If you could get your contract changed to show the guaranteed bonus then that would be very helpful.

Belloubec

My Mortgage Broker said discretionary bonuses can be taken into account if you can prove them on pay slips for the last 2 years. Mine were included and we have just had a formal mortgage offer with Halifax

amnblog

Different lenders will treat these annual bonuses differently. Some will consider the full figure, some just half.

It does not follow however that the lender with the more generous approach to the bonus will lend the most overall.

A broker will sort this for you.

ACG

amnblog wrote: »

Different lenders will treat these annual bonuses differently. Some will consider the full figure, some just half.

It does not follow however that the lender with the more generous approach to the bonus will lend the most overall.

A broker will sort this for you.

Im just going to echo this.

The calculators are accurate but you need to read up on what figures they would expect you to enter.

Harper123

So do you think if I go to a broker I stand a chance of borrowing £155,000? Or is it pie in the sky?

ACG

Possibly but a lot of lenders have maximum income multiples of 4.5x income in place. Your choice of lenders will be limited, but it can potentially be done.

HappyMJ

Harper123 wrote: »

So do you think if I go to a broker I stand a chance of borrowing £155,000? Or is it pie in the sky?

You are right on the edge of affordability so whilst one lender will lend another half a dozen won't. Which one is the one that will lend? You can research it yourself and have a go or you can just ask a broker who has been looking at the T's and C's for years and knows from experience which lenders will and won't.

Harper123

Thank you! I will be using a broker.

ThePants999

My bonus isn't guaranteed, but I claimed £5000, provided the payslips for the last two years where it was more than that, and they accepted it.