My company has consistently given out bonuses for the past few years and the bonuses have been gradually rising each year. Currently the bonuses are around 15-20% of my annual salary.
I spoke to my manager about potentially moving some of this bonus to my salary instead - as this would allow me to get a bigger mortgage as, here in the UK at least, mortgages are based on salary and not volatile earnings such as bonuses, commission etc. and they seemed open to the idea.
For example, if my base salary is £28,000 and my bonus is £7,000 this would mean I could get a house at approximately 5 x £28,000 = £140,000. However, if I got a salary at £33,000 and a bonus of £2000, this would mean that I could get a house at approximately 5 x £33,000 = £165,000 (assuming I could afford the deposit and monthly payments). This would allow me to get a significantly better house whilst being of no additional cost to the company and meaning I would still pay the same amount of tax, NI contributions etc.
Are there any downsides to this for me?