We now accept bonus income

13 January 2021

From Wednesday 13 January, we can accept variable income (bonus, commission or overtime) in our affordability assessment.

Here’s what we’ll accept

• Variable income must have been received after 2 December 2020 to show that customers have continued to receive variable income through the challenging economic conditions.
• We will use 60% of any bonus, commission or overtime.
• For variable pay received annually, six monthly or quarterly, we will use 60% of the two year average. If the most recent year is lower, we’ll use 60% of that.
• For variable pay received monthly, we will use 60% of the variable pay from the lowest of the most recent two payslips. If the year to date figure is lower, we’ll use 60% of the variable pay showing in the YTD.

Here’s what we need

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

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

For variable pay received monthly, we will need the most recent two months’ payslips.

Don’t worry if some variable income was received before 2 December and some was received after – we’ll still calculate it the same way.

We want to help

If you have any questions, just get in touch with your dedicated Business Development Manager, who’ll do everything they can to help.

The team at Virgin Money