Commission & Bonus Mortgages

Can You Get a Mortgage Using Commission or Bonus Income?

Yes. Many lenders can include regular commission, bonuses and overtime alongside your basic salary when assessing mortgage affordability.

The amount accepted depends on the lender and the evidence available. Some may use all the eligible variable income, while others use a proportion or an average based on previous payments.

Lenders will normally consider how long you have received the income, how frequently it is paid and whether the latest figures appear sustainable.

If your application also includes self-employed, contractor, dividend or investment income, read our guide to complex income mortgages.

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Can Variable Income Be Used After Changing Jobs?

Changing employer does not automatically prevent commission or bonus income from being considered, but it can reduce the evidence available.

A lender may look at:

• Whether the new role is in the same profession or industry
• Your previous record of earning variable income
• The structure of the new commission or bonus scheme
• Income received since starting the role
• Whether you are in a probationary period
• Confirmation from your employer where required

Some lenders may consider previous variable earnings alongside the new pay structure, while others will want a payment history with the current employer.

If you are planning to change jobs during a mortgage application, tell your broker before submitting the application because the lender must assess the current and expected employment position.

How Much Can I Borrow Using Commission or Bonus Income?

The borrowing calculation begins with the income the lender is prepared to accept. This may include:

• Basic salary
• Eligible commission
• Eligible bonuses
• Regular overtime or allowances
• Other sustainable household income

The lender will also consider your credit commitments, household expenditure, dependants, deposit, mortgage term and credit history.

The same applicant could receive different borrowing estimates because one lender might accept more of the variable income than another. The relevant comparison is therefore not simply each lender’s income multiple, but the income figure to which that multiple is applied.

Our mortgage calculator can provide indicative products and repayments, but it cannot determine how much of your commission or bonus a particular lender will accept.

What Evidence Will I Need?

The lender will normally require evidence of both your basic salary and variable earnings.

Depending on how you are paid, this may include:

• Recent payslips
• Your latest P60
• Personal bank statements
• Commission statements
• Bonus letters or payment confirmations
• Your employment contract
• Details of a commission or bonus scheme
• An employer reference where required

For annual bonuses, the lender may ask for evidence covering more than one payment. For monthly commission or overtime, recent payslips and year-to-date totals may be particularly important.

The exact documents should be checked before applying because lenders use different evidence periods and may interpret the same earnings differently.

What If Most of My Income Comes from Commission?

A high proportion of commission income does not automatically prevent you from getting a mortgage.

However, lender choice becomes particularly important because an assessment based mainly on basic salary could substantially understate your earnings.

A lender is likely to examine:

• How long you have worked under the commission structure
• The consistency of your earnings
• Whether commission is capped or uncapped
• Recent year-to-date performance
• Any minimum or guaranteed element
• Changes in employer, role or commission scheme

Applicants with commission-heavy income may therefore benefit from having their payslips and historic earnings reviewed before a lender is selected.