Borrowers will be able to use a maximum of 60 per cent of any bonus, commission or overtime income, and this must have been received after 2 December to show continued variable income through the pandemic.

For variable pay received annually, six monthly or quarterly, Clydesdale will use 60 per cent of the two-year average. If the most recent year is lower, it will use 60 per cent of that figure.

For variable pay received monthly, it will use 60 per cent of the variable pay from the lowest of the most recent two payslips. If the year-to-date figure is lower, it will use 60 per cent of the variable pay showing here.

 

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Evidence details

Clydesdale clarified the evidence it will need for these situations.

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

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

Compensation statements or bonus payslips can be accepted instead of P60s, as long as they cover a two-year record.

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

And if some variable income was received before 2 December and some after it will still calculate it the same way.