Can You Use Overtime, Bonus or Commission Income to Get a Mortgage in the UK?

Last updated: 15 August 2026

Yes. Most UK mortgage lenders will consider overtime, bonus and commission income as part of your mortgage affordability assessment. But the percentage they accept varies enormously, from 50% to 100%, depending on the lender, how consistent the income is, and how long you have been receiving it. Choosing the wrong lender could leave tens of thousands of pounds of your earning power on the table.

If a significant portion of your total pay comes from overtime shifts, an annual performance bonus, quarterly sales commission, or any combination of these, the lender you apply to matters more than almost anything else. Two people with identical incomes can receive very different borrowing figures simply because one applied to a lender that uses 100% of their bonus and the other applied to one that caps it at 50%. This guide shows you exactly which lenders are most generous with each type of variable income, what evidence they need, and how to maximise your borrowing.

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Do UK Lenders Accept Overtime, Bonus and Commission Income?

Yes, the majority of UK mortgage lenders accept some or all of your variable income. However, they do not treat it the same way they treat your basic salary. Variable income is assessed separately, averaged over a period (usually 3 to 12 months for overtime, 2 to 3 years for bonuses), and often discounted. The percentage a lender uses, typically somewhere between 50% and 100%, is one of the single biggest factors determining how much you can borrow.

Lenders classify your income into two buckets: guaranteed and variable. Your basic salary is guaranteed. Overtime, bonuses and commission sit in the variable bucket. The way they handle the variable bucket breaks down as follows:

Guaranteed overtime (written into your contract, e.g. compulsory weekend shifts) is treated almost like basic salary by many lenders. Some will use 100% of it with just 3 months of payslip evidence.

Non-guaranteed overtime (voluntary extra shifts) is treated more cautiously. Lenders average it over 6 to 12 months and typically use 50% to 100% depending on consistency.

Annual bonuses are averaged over 2 to 3 years using P60s or payslips. Most lenders use 50% of the average. Some, like Kensington, Hodge and Santander, can go up to 100%.

Commission follows a similar pattern to bonuses but can be more complex, particularly for 100% commission-based roles like estate agents, recruiters and financial advisers. Lenders want to see regularity and sustainability.

How Do Lenders Calculate Overtime for a Mortgage?

Lenders split overtime into two categories: guaranteed and non-guaranteed. Guaranteed overtime, where your contract states you must work a set number of additional hours, is viewed almost identically to basic salary by most lenders. Non-guaranteed overtime, where you choose to pick up extra shifts or hours, is averaged and discounted. The distinction is critical because it can change how much you borrow by thousands of pounds.

Guaranteed overtime: If your contract says you work a minimum of 8 hours overtime per week at a set rate, many lenders will count 100% of that income. You typically only need 3 months of payslips showing the overtime appearing consistently. This is common in healthcare (NHS band staff doing compulsory on-call), policing (overtime rotas), and manufacturing (shift premiums).

Non-guaranteed overtime: If overtime is voluntary and varies month to month, lenders will average it over 6 to 12 months and then apply a haircut, typically between 50% and 100%. The more consistent and regular the overtime, the higher the percentage they will use. If your overtime drops significantly in one month, it brings the average down and reduces your borrowing.

A practical tip: if you know you are going to apply for a mortgage in 6 months, try to maintain consistent overtime levels during that period. A steady £400 per month over 6 months is better evidence than £800 one month and £100 the next, even though the total is similar.

How Do Lenders Assess Bonus Income for a Mortgage?

Annual bonuses are one of the most misunderstood income types in UK mortgage lending. Lenders want to see a track record of receiving bonuses over 2 to 3 years, and they average those figures to calculate a sustainable number. Most mainstream lenders then use 50% of that average. A smaller group use up to 100%, which can add significantly to your borrowing power.

There are three main averaging methods lenders use, and the choice of method can shift your affordability outcome by 15% to 25% on the same evidence:

Method 1: Straight average over 2-3 years. The lender adds your last 2 or 3 annual bonuses and divides by the number of years. If you earned £8,000, £10,000 and £12,000 in bonuses over 3 years, the average is £10,000. This is the most common method.

Method 2: Latest year only. Some lenders use only the most recent year’s bonus. If your bonuses are trending upwards, this method gives the highest figure. If they are trending down, it gives the lowest.

Method 3: Lowest of the last 2-3 years. A handful of more conservative lenders use the lowest bonus figure from the review period. This is the most cautious approach and typically gives the lowest borrowing figure.

The method a lender uses is usually not negotiable. This is why choosing the right lender matters so much. A broker who understands these differences can match you to the lender whose method and percentage work best for your specific bonus profile.

How Do Lenders Treat Commission Income?

Commission income is assessed similarly to bonuses but with added complexity, especially when commission forms a large proportion of your total pay. Lenders want to see that your commission is regular, sustainable and backed by at least 6 to 12 months of payslip evidence. Most use a percentage of the average, typically 50% to 100%, depending on consistency and the lender’s appetite.

The key question lenders ask about commission is: what proportion of your total income does it represent? Someone earning a £40,000 basic salary plus £5,000 annual commission is straightforward. Someone earning £20,000 basic plus £30,000 commission is a very different risk profile, because their income depends heavily on sales performance.

Lenders who are comfortable with high-commission roles include Kensington (up to 100% of regular commission), Santander (100% if regular and consistent, 70% if regular but inconsistent), and Hodge (up to 100%). More cautious lenders like Virgin Money cap variable income at 60% (or 75% with a 3-year track record).

If your commission fluctuates seasonally (common in recruitment, property sales, and automotive), make sure your broker chooses a lender that averages over a period long enough to capture your full cycle. A lender that only looks at the last 3 months could catch you in a quiet quarter and undervalue your real earning power.

Which UK Lenders Are Most Generous with Variable Income?

This is the table that can save you thousands of pounds. The percentage of variable income a lender accepts directly affects your maximum borrowing. The difference between a lender using 50% and one using 100% of a £15,000 annual bonus, at a 4.5x income multiple, is £33,750 in borrowing power.

Lender	Overtime	Bonus	Commission	Key Notes
Santander	70-100%	70-100%	70-100%	100% if regular and consistent. 70% if regular but inconsistent. One of the most generous mainstream lenders for variable income.
Kensington	Up to 100%	Up to 100%	Up to 100%	Specialist lender, broker-only. Very generous on regular variable income. Accepts complex income structures.
Hodge	Up to 100%	Up to 100%	Up to 100%	Specialist lender, broker-only. Particularly strong on bonus income for professional roles.
Halifax	50-100%	50%	50%	Uses higher % for guaranteed overtime. Averages variable income over available period. One of the largest lender panels.
NatWest	50-100%	50%	50%	Higher percentage for longer track records. Averages over 6-12 months for overtime.
Accord (Yorkshire BS)	60%	60%	60%	Accepts 60% of sustainable overtime and bonus, capped so total variable income does not exceed basic salary.
Virgin Money	60% (up to 75%)	60% (up to 75%)	60% (up to 75%)	60% standard. Up to 75% with a 3-year track record (2 years if paid monthly or more frequently).
Barclays	50%	50%	50%	Conservative on variable income. Uses 50% of average over available period.
HSBC	50%	50%	50%	Standard 50% treatment. May be more flexible for existing Premier customers.
Nationwide	50%	50%	50%	Requires 6 months evidence. Reliable but not the most generous for variable income.

Lending criteria correct as at August 2026 and subject to change without notice. Always confirm current criteria with your adviser before applying.

The pattern is clear: if variable income is a large part of your pay, Santander, Kensington and Hodge are significantly more generous than the typical 50% offered by Barclays, HSBC and Nationwide. A broker who understands these differences can add tens of thousands to your maximum borrowing.

What If 100% of My Income Is Commission?

If you work on a 100% commission basis with no basic salary, you can still get a mortgage, but your lender options narrow and the evidence requirements are stricter. This is common among estate agents, recruitment consultants, financial advisers, some insurance brokers and certain sales roles. Lenders treat you essentially as self-employed, even if you are technically PAYE.

For 100% commission roles, lenders typically require at least 12 months of payslips or P60s showing consistent earnings. Some want 2 years. They will average your commission over the review period and apply a percentage, usually between 50% and 100%. The FCA’s 2026 Mortgages Report noted that more lenders have broadened their criteria for variable income in recent years, and a growing number now accept 100% of commission with sufficient evidence.

The key to success with a 100% commission application is presenting consistency. Monthly payslips that show roughly similar amounts each month are far stronger evidence than payslips that swing wildly between £2,000 and £8,000. If your income is seasonal, make sure the averaging period is long enough to smooth out the peaks and troughs.

Lenders like Kensington and Hodge are particularly strong for 100% commission earners because they have manual underwriters who assess the case individually rather than running it through an automated affordability engine that might reject non-standard income patterns.

What Documents Do You Need to Evidence Variable Income?

The documents you need depend on the type of variable income and the lender’s specific requirements. Having everything ready before you apply avoids delays and back-and-forth with the underwriter. Here is a checklist for each income type.

For overtime:

Latest 3 to 6 months of payslips showing overtime clearly itemised as a separate line. Your employment contract or a letter from your employer confirming whether overtime is guaranteed or voluntary. Bank statements showing the net pay arriving each month.

For annual bonuses:

P60s for the latest 2 to 3 years (these confirm your total annual earnings including bonuses). Recent payslips showing the bonus payment if it falls within the current tax year. A letter from your employer confirming the bonus structure (is it discretionary, contractual, performance-based?) and historical bonus figures. Some lenders also accept a screenshot from your employer’s HR portal if it shows bonus history.

For commission:

Latest 3 to 12 months of payslips showing commission payments. P60s for the latest 1 to 2 years. A letter from your employer confirming the commission structure (base + commission split, whether commission is uncapped, typical earning range). If you are paid 100% commission, you may also need your SA302 tax calculations from HMRC if the lender treats you as self-employed.

For all variable income types:

Photo ID, proof of address, proof of deposit source, and 3 months of bank statements. Your broker will tell you exactly what your chosen lender requires before you submit, so nothing is missing.

How Much More Could You Borrow?

The difference between a lender that uses 50% of your variable income and one that uses 100% is not trivial. Here is a worked example showing the impact on a real-world borrowing scenario.

Scenario	Income Used	Max Borrowing (4.5x)	Difference
Basic salary only	£35,000	£157,500	Baseline
+ £10,000 bonus (50% used)	£35,000 + £5,000 = £40,000	£180,000	+£22,500
+ £10,000 bonus (100% used)	£35,000 + £10,000 = £45,000	£202,500	+£45,000
+ £10,000 bonus + £6,000 overtime (100% used)	£35,000 + £10,000 + £6,000 = £51,000	£229,500	+£72,000

That is an extra £72,000 in borrowing power by choosing a lender that uses 100% of both your bonus and overtime, compared to one that only considers your basic salary. In many parts of the UK, that is the difference between a two-bed flat and a three-bed family home.

To model your own figures, try our mortgage calculators.

How UK Mortgage Finder Can Help

UK Mortgage Finder connects you with FCA-regulated, whole-of-market mortgage advisers who understand how different lenders treat overtime, bonus and commission income. Our advisers compare deals from over 90 lenders and know exactly which ones use 100% of your variable income, which averaging method each one applies, and how to present your income evidence in the strongest way.

The service is free, with no obligation. Whether you are an NHS nurse earning regular overtime, a sales manager with a large annual bonus, a recruitment consultant on 100% commission, or any combination of these, our advisers will find the lender that maximises your borrowing power.

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