In this section we cover monthly, quarterly and annual bonus packaging:
Bonus – discretionary (Annual or Bi-annual) – Max 50%
Acceptable? Yes
Main or Other: Main
Key on application as: Discretionary bonus
Evidence: Payslips showing bonus for last 2 years. 2 Payslips where annual or 4 Payslips where bi-annual
For discretionary bonuses we will consider an average of the last 2 years' payments (cash element only) and use 50% of it in our affordability calculation. When keying please key 100% of the amount received and we will use 50% of this. Please note that where the latest years' bonus was lower the underwriter will use 50% of the most recent year's bonus.
Bonus – guaranteed (Annual or Bi-annual) – 100%
Acceptable? Yes
Main or Other: Main
Key on application as: Guaranteed bonus
Evidence: Payslips showing bonus for last 2 years. 2 Payslips where annual or 4 Payslips where bi-annual. Contract also required.
For guaranteed bonuses we will consider an average of the last 2 years' payments (cash element only) and use 100% of it in our affordability calculation. Please note that where the latest years' bonus was lower the underwriter will use 100% of the most recent year's bonus. We will require the contract to confirm there is no stipulations on the bonus being paid.
Bonus (Monthly)
Acceptable? Yes
Main or Other: Main
Key on application as: Discretionary bonus
Evidence: Latest 3 months consecutive Payslips showing bonus payments. YTD income should support. If paid weekly the latest 13 Payslips
We can consider 100% of regular bonus evidenced by the last 3 months consecutive payslips. Monthly income should correlate to YTD salary. Where this is paid weekly the latest 13 payslips will be required.
Bonus (Quarterly)
Acceptable? Yes
Main or Other: Other
Key on application as: Discretionary bonus
Evidence: Latest 4 Payslips showing bonus payment for each quarter
We can consider 100% of quarterly bonus evidenced by the latest 4 Payslips showing the bonus payment for each quarter.