Using Your Annual Bonus to Boost Your Deposit
DIRECTOR AND MORTGAGE ADVISER
Specialist broker for high-earning professionals and complex income cases.
For high earners in finance, law, or consulting, bonus season isn’t just a welcome payday—it’s an opportunity.
Used strategically, your annual bonus can help you unlock better mortgage terms, increase affordability, and secure the property you really want. Here's how to make it work for you.
Request your fee free mortgage consultation today. No obligation, just sound advice.
Why Lenders Care About Your Deposit
Your deposit size directly affects:
Loan-to-value (LTV): The percentage of the property you’re borrowing versus putting in yourself.
Interest rates available: Lower LTVs often unlock better rates and reduce the cost of borrowing.
Lender choice: Some lenders have strict LTV caps, especially for complex income cases or high-value properties.
Affordability cushion: A larger deposit means lower monthly repayments and stronger affordability outcomes.
The bottom line? More deposit = more flexibility.
How a Bonus Can Meaningfully Shift the Numbers
Let’s say you have a £150k base deposit and receive a £50k bonus net of tax. By applying that bonus to your deposit:
You reduce your LTV, e.g., from 90% to 85%
You may move into a more favourable lending bracket
You show financial discipline, which improves your overall application profile
Even an extra 5% on your deposit can lead to noticeably better mortgage options—especially above the £750k–£1m+ property mark.
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How to Evidence Bonus Income Properly
If you’re using your bonus as part (or all) of your deposit, lenders will want to see:
Payslip showing bonus paid
Bank statement confirming funds received
Consistency over time, if bonus forms part of your affordability calculation
Timing matters. You may need to show that the funds have cleared your account, and that they’re not borrowed or gifted (unless properly documented).
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When to Use Your Bonus for Deposit vs Overpayment
Not all bonus strategies are about the initial deposit. Depending on your goals, you might consider:
Boosting your deposit upfront, to reduce LTV and unlock better deals
Keeping some in reserve for future overpayments, offset accounts, or early repayment
Retaining liquidity if your income is irregular and you value cash flow flexibility
If you’re considering an offset mortgage, your bonus could reduce interest while remaining accessible for future use.
Don’t Forget the Rest of the Picture
While your deposit is a major part of your application, lenders also consider:
Your income structure—especially if you’re paid via salary + bonus, or as a partner or contractor
Credit history and financial conduct
Your overall affordability, including fixed outgoings
Your plans for the property, such as resale or long-term ownership
A bonus-boosted deposit can strengthen your profile—but presenting it properly is key.
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Conclusion: Put Your Bonus to Work for Your Mortgage
Your bonus can do more than buy a holiday or top up savings—it can materially improve your mortgage outcome. By using it to strengthen your deposit, you increase your buying power, reduce interest, and gain more control over your borrowing journey.
Ready to structure your bonus strategically?
We specialise in helping high earners use income, bonuses, and complex pay structures to optimise their mortgage options. Let’s talk.
Request your fee free mortgage consultation today. No obligation, just sound advice.
FAQs
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Not usually. Most lenders require it to be received and cleared before it counts as part of your deposit.
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Lenders may still consider it—especially if it’s documented over a few years—but may use a reduced average.
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Most do, but criteria vary. Some only count a portion toward affordability or may cap how much can be used.
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It depends on your LTV, rate options, and future plans. A broker can help compare both approaches.
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YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
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