Quick answer
Most UK lenders accept bonus, commission and overtime income — but the treatment varies more than for any other income type. For guaranteed bonuses, 38 of 52 lenders use 100% of the amount while 14 cap it at 50%; for performance bonuses, only 17 use 100% and 32 cap at 50% (Which? criteria data). A £20,000 bonus can therefore add anywhere from £0 to £100,000 to your maximum borrowing depending on where you apply.
How lenders treat bonus and commission income
Every lender starts with your basic salary and then decides how much of your variable pay to add before applying its affordability model. There are three broad camps:
The generous camp uses 100% of your averaged bonus or commission, treating a consistent track record as real income. For guaranteed or contractual bonuses this is actually the majority position.
The typical camp applies a haircut — usually 50%, sometimes 60-65% for regular monthly commission — on the logic that variable pay might not continue at the same level.
The strict campignores discretionary bonuses entirely, or excludes them until you can show two full years of history. If your first application happened to land here, your “maximum borrowing” can look dramatically lower than it really is across the market.
The evidence lenders ask for
Expect to provide your last two P60s and recent payslips showing the bonus or commission entries. Regular monthly commission is usually averaged over 3-12 months of payslips; annual bonuses over two years of P60s. Where a bonus is contractual, a copy of your employment contract or a letter from your employer strengthens the case considerably — and moves you into the generous camp at more lenders.
Frequently asked questions
Do mortgage lenders take bonuses into account?
Yes, most do — but how much of your bonus counts varies enormously. For guaranteed bonuses, 38 of 52 lenders in Which? criteria data use 100% of the amount, while 14 cap it at 50%. For performance-related bonuses the picture flips: only 17 use 100% and 32 cap at 50%. A minority ignore variable pay entirely. The lender you pick can be worth tens of thousands of pounds of borrowing.
How is bonus income calculated for a mortgage?
Most lenders average your bonus over the last two years, evidenced by P60s or payslips, then include some percentage of that average — commonly 50% or 100% — on top of your basic salary before applying their affordability calculation. Some use only the latest year's figure, and some cap the bonus element at a proportion of basic salary.
Does commission count as income for a mortgage?
Yes. Regular monthly or quarterly commission is often treated more like core income than an annual bonus — with a consistent 12-24 month track record, several lenders will use 100% of your average commission. Others cap it at 50-65%. If commission is most of your pay, lender selection matters more for you than almost any other borrower.
Can I use overtime for a mortgage?
Yes, most lenders accept regular overtime, usually averaged over 3-24 months of payslips. Contractual or guaranteed overtime is treated most generously (often 100%); purely voluntary overtime is more commonly capped at 50%. NHS and other shift-pattern workers with consistent enhancements often do better than they expect.
How many years of bonus history do I need?
Two years is the standard ask, evidenced by P60s or year-end payslips. Some lenders will work with 12 months, especially where the bonus is contractual or the employer confirms it in writing. Under 12 months of history, most lenders will exclude the bonus — though a job offer letter guaranteeing a bonus can sometimes be used at the most flexible lenders.
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Last updated: July 2026
