We now accept bonus income

18th December 2020

From Friday 18 December, we can accept variable income (bonus, commission or overtime) in our affordability assessment.

Here’s what we’ll accept

• Variable income must have been received after 2 December 2020 to show that customers have continued to receive variable income through the challenging economic conditions.
• We will use 60% of any bonus, commission or overtime.
• For variable pay received annually, six monthly or quarterly, we will use 60% of the two year average. If the most recent year is lower, we’ll use 60% of that.
• For variable pay received monthly, we will use 60% of the variable pay from the lowest of the most recent two payslips. If the year to date figure is lower, we’ll use 60% of the variable pay showing in the YTD.

Here’s what we need

For variable pay received annually, we need the most recent bonus payslip which must be dated 2 December 2020 or later plus the 2020 P60.

For variable pay received six monthly or quarterly, we will need the most recent bonus payslip which must be dated 2 December 2020 or later, plus the two most recent P60s.

We can accept compensation statements or bonus payslips instead of P60s, as long as they cover a two-year record.

For variable pay received monthly, we will need the most recent two months’ payslips, at least one of which must be dated 2 December 2020 or later.

If some variable income was received before 2 December and some was received after – we’ll still calculate it the same way.

Get in touch

Any questions? Speak to your dedicated Business Development Manager.