Any payment made to an employee as a result of good performance by the individual, a team, or the company as a whole. Bonuses can make a significant supplement to salaries, especially in sales related organisations. However, they are taxable like any other income, and are not always taken into account by lenders when making credit decisions. If you receive an unexpected bonus, make sure you allocate a reasonable amount to enjoy, and also put aside a substantial proportion for long term saving.

Lenders will prefer he security of basic salaries as a bais for releasing funds. Bonuses can be a useful way to overpay on the mortgage, or pay off the capital if the loan is on an interest only basis. policy documents.