Income types
UK Mortgages by Income Type
Lenders disagree on what counts as income. Bonus, commission, dividend, lodger and maintenance income each have their own lender pool and weighting rules. The same applicant can qualify for £30,000-£60,000 more at the right lender purely from how variable income is counted.
Income questions
Bonus, commission and overtime
Most lenders count 50-75% of variable income. A handful use 100%.
Read the answerDividend income (Ltd company director)
Salary + dividends is the standard. Retained profit often yields more.
Read the answerLodger / rental income
Existing rental income usually counts at 50-75%. Lodger rent in a new home rarely does.
Read the answerMaintenance / child-support payments
Court-ordered maintenance counted 100% by many. CMS-assessed is a close second.
Read the answerWhat lenders look at
Four factors determine how income is weighted:
- Sustainability — lenders want evidence of at least 2 years of consistent income. One-off payments rarely count.
- Guaranteed vs discretionary — contractual / guaranteed income counts at a higher weighting than discretionary.
- Taxed vs untaxed — most lenders want income declared to HMRC. Untaxed income (some benefits, rent-a-room) is often discounted or excluded.
- Documentation — P60, SA302, tax calculations, payslips, bank statements, or for maintenance a court order / CMS letter.
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