High street lenders have restrictive lending rules. This means that you will be eligible for a large mortgage if you have a continuous source of income. Otherwise, it will be impossible for you to get a large mortgage and buy a house. In the past, volatile revenues were negative when calculating the affordability of large mortgage applicants. Many professionals today work on performance-based contracts. Marketers and salespeople also achieve their monthly goals commensurate with bonus-based payments. But new lenders tend to pay more attention to these revenue segments.
Also, other conditions can help you get a large mortgage. Specialist advisors in AWS mortgages work with many clients, most whose revenue comes from their annual bonuses. So our specialist advisors can help you get your large mortgage this way.
How Can I Get Mortgages Using Bonus Income?
If most of your earnings come from bonuses, you may be wondering if you can afford large mortgages from high street lenders. For some people, bonuses make up more than half of their annual income. Therefore, mortgages that can be provided to these people must have specific characteristics. Don’t worry if most of your earnings come from bonuses.
Some lenders use this form of income as a basis for calculating your affordability. However, this process will not be easy and will be challenging. Different lenders use different criteria to assess your affordability to mortgages repayment, making their offer rates very different. Here are some tips to help you get an outstanding mortgage.
Mortgages Using Bonus Income; Rejection Reasons
Lenders consider different terms and interest rates for their products based on various criteria and the income structure of the applicants. Some lenders do not accept bonuses as personal income, which poses challenges for applicants’ credit scores. Therefore, it is necessary to have a thorough study of the mortgage market. In this regard, experienced brokerage companies help you choose the best option while examining the different rates and conditions of the available options. Here are some of the potential challenges facing mortgage applicants:
Bonus time interval
Some lenders do not accept monthly incomes as their source of income, while others do not base seasonal and annual incomes on their calculations. So the timing of your bonus is essential to many lenders.
Continuity of your received bonuses
If your income changes from month to month, some lenders may not accept the risk of getting your mortgage. Some lenders also consider your total income as the basis for assessing your affordability. So it’s essential to find the lender that best suits your financial situation.
Duration of receiving the bonus
Many lenders want to know what your bonuses have been for the past two to three years. However, some of them use your bank accounts in the last year or the previous few months as the basis for calculating your risk.
Bonuses as your fixed income
Some lenders base their earnings on a percentage of your total income. Others consider a specific proportion of your bonus as your fixed income. How lenders evaluate your bonuses is very different. This adds to the complexity of this issue, and for this reason, it is necessary to seek experts from brokerage firms who have experience in this field.
If a large portion of your revenue comes from bonuses, it is best to consult with experienced brokers to consider all the options available in the market and choose the option that best suits your financial situation. AWS Mortgages specialist advisors have considerable experience in reviewing and evaluating bonus-based mortgage applications. They know the lender criteria well and help you minimize the risk of your application being rejected.