Lenders will generally use between 25% and 50% of variable income to apply to CBI lending rules. Variable income is any income that is not guaranteed. Variable income must be proven in current and prior periods by way of payslip. Variable income may include:
Overtime – will be taken into account if proven regular. Bonus – to be demonstrated that it has been paid for the past 2 to 3 years (depending on Lender) and average taken. Commission – it is generally recognised that this can be a major part of remuneration packages particularly in the sales industry. Commission is generally reviewed on the basis of proven income over a period of 6 to 12 months or estimated normal / average income levels.