City bonus mortgage

Woolwich has launched a new type of mortgage aimed at people who receive a large chunk of their salary in their annual bonus.

In many large City firms, annual bonuses can make up 40% of total pay. The new mortgage is designed for people wanting to buy now, but who will not have the means to do so until their bonus arrives.

According to Andy Gray, head of mortgages for Woolwich "Most people expecting a large bonus in January or February will already have a good idea if they are going to get one. The problem is it doesn't get paid until the new year. If they wait for the bonus the property may have gone."

The new Woolwich City bonus mortgage is only available to people wanting to borrow more than £500,000.