Tips on calculating your gross income.
Gross Annual Income can include the following:
- Some employment allowances
- Certain government benefits
- Child maintenance
- Self-employed income
- Salary and Dividends for company Directors.
So you take income from the above and add together. If you are a couple then add all elements of both incomes.
Commission and Bonus.
For commission and bonus, a large majority of mortgage lenders will use the average of the last 3 months. So the calculate add up the total of commission/bonus for the last 3 months, divide then times by 12. That gives you an annualised total based on an average of your last 3 months. Add that to your annual salary and enter into the calculator above.
Certain government benefits.
This might include tax credits, universal credit, child benefit or disability living allowance.
Self Employed and company directors.
One of the most common questions we get asked is – if I’m self-employed, how will lenders assess my income and affordability? So we have written a post about is How Mortgage Lenders Assess Self-Employed Income we give an overview of the different ways that lenders assess the income of the self-employed for the purpose of mortgage lending. Worth reading if you’re looking for a self-employed mortgage.