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Virgin Money extends income criteria to bonus and overtime earnings

  • 13/01/2021
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Virgin Money extends income criteria to bonus and overtime earnings
Virgin Money has updated its mortgage affordability criteria to include bonus, commission and overtime earnings.


The change only applies to variable earnings received after 2 December, which Virgin said would demonstrate the borrower has continued to receive a bonus, for example, in challenging economic conditions.

The bank will accept 60 per cent of bonus, commission and overtime earnings in the affordability assessment for the mortgage.

For variable pay received annually, six monthly or quarterly, Virgin Money will use 60 per cent of the two-year average. Or if the most recent year is lower, the bank will use 60 per cent of that figure.

To support the application, borrowers will need to submit the most recent bonus payslip if the pay is received annually and it must be dated 2 December or later. A 2020 P60 is also required.

If the variable pay is received every six months or quarterly, the borrower must provide their most recent bonus payslips which meet the date restrictions and the two most recent P60s.

Monthly variable pay must be evidenced by the two most recent monthly payslips.

The move brings the lender’s variable income criteria in line with sister bank Clydesdale’s policy which was changed in December.

Ipswich Building Society also announced changes to its affordability criteria this week. The society will now accept regular shift allowance as earnings and has increased its income multiples.


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