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The annual income earned that is guaranteed regardless of the individual's or his or her company's performance. This is important when establishing a borrower's ability to pay, especially for sales people, or other employees where a significant part of their salary package is made up of commissions, bonuses or share options
Basic salary should be easily proveable by pay slips and so is taken with confidence by lenders as a guarenee you can afford the financial committments of the mortgage loan.
Lenders will be more skeptical about commission, bonuses and extra incomes as they are performance related and therefore less secure. Lenders may require proof from pay slips, bank statements and corroboration from the employer.
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