Boost for borrowers with bonuses

A number of banks have started to reintroduce bonus-friendly mortgages, making it easier for wealthy homebuyers with variable incomes to secure larger home loans. While some deals in recent years have allowed borrowers to declare 50% of a bonus to be factored into calculations determining how much they could borrow, Nationwide, Skipton Building Society and Metro Bank are taking whole bonuses into account, while Santander, Halifax and Scottish Widows will take into account up to 65% of a borrower’s bonus. Mark Harris, chief executive of the mortgage broker SPF Private Clients, says lenders allowing a loan applicant to declare 100% of a bonus will look at the average over the past two years, while those letting a person declare 60% tend to look at that year’s bonus alone.

The Times (17/01/2020)