Bonus related pay

Oldjolly

I'm currently in a job where I'm paid an average bonus every month of 800 before tax. 

Last financial year I got 9000 in bonus over the year. Last month due to very difficult trading, no bonus was paid. 

My question really is, how would this affect any mortgage that I apply for and when would be the best time for me to apply for a mortgage based on this?

K_S

@oldjolly It'll depend on the lender as there are different ways of looking at monthly bonus/overtime/commission and also whether you need to 'maximise' borrowing.

For example, lender 1 might take average of last 3 payslips and use 60% of it, lender 2 might take lowest of last 3 and use 100% of it, lender 3 might take average of last 6 and use 100%, some might cross-match it with the latest P60, some might need every payslip to show, others might not.

If you don't need to maximise borrowing and only need to borrow well within affordability, then the distinctions shown above might not be too important.

Brie

Not quite the same situation but when I applied for a mortgage I included my last P60 to show what an annual bonus added to my wage.  I don't know if they took it into account as obviously a bonus is never guaranteed.  when you apply you could ask and provide the last couple of years to prove consistency perhaps?