Search Q&A
Mortgages for bonus dependent incomes
I recently inquired at my bank (the orange one) about a mortgage loan and was surprised to learn that they would not take any part of my bonus into account as income (where my bonus accounts for 30-40% of my gross income annually). Can anyone direct me to a bank or mortgage broker dealing with bonus dependent income?
It wouldn't surprise me if no-one will take your bonus into account.
If a borrower defaults on a mortgage here, before the lender can foreclose they must satisfy a court that they took every precaution to ensure that the loan was safe before lending the money. This is why lenders have strict rules about the ratio bewteen income and repayments.
A lender will be very cautious about lending based on an income that, however unlikely, cannot be guaranteed. If your income drops and you cannot make your repayments the lender will have no guarantee that they will be able to get their money back if the court decides that the loan was unwise.
