Variable income news article

13th February 2023

We’ve been working overtime on our mortgages, and have some good news for you.

At Clydesdale Bank, in some cases, we can consider using as much as 75% of a customer’s variable income, such as bonuses, overtime or commission in our affordability calculations – that’s up from our usual 60%.

So you know, to get to that 75%, we’ll need to see a three-year track record (or two years if the income is received monthly or more regularly) and we’ll need to take a look at the details before you apply.

A real-life example

Here’s how we recently said yes to a customer, using 75% of their variable income:

Loan requested: A joint application for £1,250,000 (70% LTV).

Background:The customer works in a senior position for a professional services firm, on a basic salary of £65,000. They also receive an annual bonus, with a three-year track record to prove it. In the most recent year it was £175,000 and £130,000 the year before. The second customer was employed with a basic income of £60,000.

The outcome:Thanks to the customer’s strong track record, we were able to use 75% of a two-year average, instead of the normal 60%.

You can find our current rates on our website.

If you’ve got any questions, you can get in touch with your Business Development Manager.