Mortgage News
Halifax increases bonus, commission and overtime income allowance
Halifax has increased the allowable proportion of the bonus, commission and overtime income it uses in its affordability assessment from 30 per cent to 60 per cent.
The bank temporarily reduced the proportion last year as it expected this income of type to vary greatly due to changes in employment and working patterns during the pandemic.
Halifax said: “We have continued to monitor the situation closely to ensure we make the right decisions to support our customers and are now updating our criteria.
“Bonus, commission and overtime must continue to represent a regular and sustainable feature of the customer’s income.”
This change will apply to mortgage applications keyed in from tomorrow. Previous rules will remain on applications which have been started before 8 September.
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The income types must be entered as normal and Halifax’s online mortgage calculator will be updated to reflect the changes.