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Bonus Pay As Part Of Total Income For Mortgage?

Hi, i just wanted to know if mortgage companies take bonus pay as part of the overal income multiples. I have a basic salary i get paid each week but i also get, what is classed by my company as 'bonus POB' which is basically an addition to my basic salary for the amount of work undertaken. I would like to know if a mortgage company would consider this income as being part of my basic income as it is part of my contract of employment and i have always received it, but it fluctuates based on how much work i do. I also receive a separate performance related bonus.

Many thanks

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Simple answer is:

    Some lenders will
    Some lenders will not

    Out of those that will, some may use 100% of this extra income, other may use only a certain portion i.e. 50% of it

    Does it make a big difference to your income? Is it essential that you use this extra income to get the mortgage agreed?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Ttp608
    Ttp608 Posts: 45 Forumite
    the bank i have applied with is lloyds tsb and quoted my salary to them as being inclusive of the bonus POB as i dont consider this to be a bonus but a variable sum which i am guaranteed each week. I just want to know if they would except it as being part of my base salary. If not then i presume they would decline my application
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    ttp608 wrote: »
    the bank i have applied with is lloyds tsb and quoted my salary to them as being inclusive of the bonus POB as i dont consider this to be a bonus but a variable sum which i am guaranteed each week. I just want to know if they would except it as being part of my base salary. If not then i presume they would decline my application

    Have you asked them how they will treat the income?

    C&G will tend to use the P60 figure as well, so yu shoudl be fine, but double check with them
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Ttp608
    Ttp608 Posts: 45 Forumite
    my p60 which i have already provided shows my income as being what i quoted to them minus my performance bonus. However they have now requested my payslips i am just concerned they will look at my payslip and assume that my bonus POB is just a bonus and is not guaranteed and as such my basic salary is significantly lower then what i had declared
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