Mortgages for People Paid in Commission or Bonuses

Mortgages for People Paid in Commission or Bonuses

If part of your income comes from commission, bonuses or performance-related pay, you may still be able to get a mortgage.

The challenge is that not every lender treats variable income in the same way.

Some lenders may use a strong proportion of your commission or bonus income if it has been regular and well evidenced. Others may only use part of it, average it over time, or ignore one-off payments completely.

That means lender choice can make a major difference to how much you can borrow.

A borrower with a modest basic salary but strong regular commission may look weak to one lender and perfectly acceptable to another.

The key is proving that the income is reliable, sustainable and likely to continue.

👉 Check your mortgage options if your income includes commission or bonuses.

Why commission and bonus income can make mortgages more complicated

Mortgage lenders want to understand how much income you can rely on.

Basic salary is usually straightforward because it is fixed and regular.

Commission and bonuses can be more complicated because they may:

• change month to month
• depend on performance
• depend on sales targets
• depend on company results
• be discretionary
• be seasonal
• be paid quarterly or annually
• vary between years
• be affected by job changes

This does not mean lenders will not use the income.

It means they usually want evidence of a pattern.

A lender is more likely to feel comfortable if your commission or bonus has been consistent over time.

Can commission income be used for a mortgage?

Yes, commission income can often be used for a mortgage, depending on lender criteria.

Lenders may look at:

• how long you have received commission
• how regular the payments are
• whether commission is increasing or falling
• whether it is contractual or discretionary
• how much of your total income is commission
• whether the role is stable
• whether your employer can confirm the structure
• whether the income appears on payslips and P60s

Some lenders may use all of the accepted commission.

Others may use a percentage.

Some may average it over a period.

Some may ignore it if the track record is too short or too irregular.

For wider income-document guidance, read can you get a mortgage without proof of income?

Can bonus income be used for a mortgage?

Yes, bonus income can sometimes be used.

The lender will usually want to understand whether the bonus is regular, repeatable and supported by evidence.

They may ask:

• is the bonus contractual or discretionary?
• is it paid monthly, quarterly or annually?
• has it been paid for more than one year?
• is it similar each year?
• is it linked to individual performance or company performance?
• is it likely to continue?
• does your employer confirm the bonus structure?

A guaranteed or contractual bonus is usually easier to evidence than a one-off discretionary bonus.

But even discretionary bonuses may be considered if there is a strong history.

Commission vs bonus income: what is the difference?

Commission is usually linked to sales, revenue or performance.

Bonus income is often a reward paid on top of salary, sometimes based on individual, team or company performance.

Both can be variable.

But lenders may assess them differently.

Commission may be paid monthly and show a regular pattern.

Bonus income may be paid annually and require a longer history.

The more predictable the income appears, the easier it is for a lender to include it.

How lenders usually assess commission income

Lenders commonly look at three things:

• track record
• consistency
• proportion of income

Track record

A longer track record helps.

Some lenders may consider commission if it has been paid for several months.

Others may prefer a year or more.

Some may want two years where commission forms a large part of income.

A borrower who has received steady commission for two years is usually easier to place than someone who has only received one large payment recently.

Consistency

Consistency matters more than one exceptional month.

A lender may prefer:

• regular monthly commission
• stable quarterly commission
• predictable annual patterns
• similar earnings year to year

They may be more cautious where income is highly volatile.

For example, £800–£1,000 commission every month may be easier to use than one £12,000 payment that may never happen again.

Proportion of total income

The more you rely on commission, the more carefully the lender may assess it.

If your commission is a small top-up to a strong basic salary, the application may be more straightforward.

If most of your income comes from commission, lender choice becomes more important.

This does not mean sales-heavy roles are excluded.

It means the lender needs to understand the income pattern properly.

How lenders usually assess bonuses

Bonus income can be assessed in several ways.

A lender may:

• average bonuses over two years
• use the latest bonus
• use the lower of the last two years
• use a percentage of bonus income
• only use guaranteed bonus
• ignore one-off or exceptional payments
• ask for employer confirmation

Annual bonuses can be harder than monthly commission because the lender has fewer data points.

If your bonus is paid once per year, the lender may want to see more than one year of evidence.

What evidence do lenders need?

Evidence varies by lender, but you may be asked for:

• recent payslips
• P60s
• employment contract
• employer reference
• bonus letters
• commission statements
• year-to-date income breakdown
• bank statements
• proof of deposit
• credit commitments
• explanation of income changes

If your commission or bonus does not appear clearly on payslips, the lender may ask more questions.

Clear paperwork can make a big difference.

Why payslips and P60s matter

Payslips show recent income.

P60s show total pay for the tax year.

Together, they help the lender compare current earnings with previous annual income.

If your payslips show commission or bonuses clearly, the lender can see the pattern more easily.

If your P60 confirms that variable income has been received over time, that may support the case.

If the numbers do not match or the income is unclear, underwriting may take longer.

Can an employer reference help?

Yes, sometimes.

An employer reference may help confirm:

• basic salary
• job title
• length of employment
• commission structure
• bonus structure
• whether payments are contractual
• whether income is likely to continue
• year-to-date earnings
• previous earnings
• expected future earnings

Not every lender will rely on an employer reference in the same way, but it can help explain income that is not obvious from payslips alone.

How much commission or bonus income will lenders use?

There is no single answer.

Some lenders may use 100% of accepted variable income.

Others may use 50%, 60% or another percentage.

Some may use an average.

Some may use the lower of recent years.

Some may ignore income that looks too irregular.

This is why two lenders can give different borrowing amounts for the same borrower.

One lender may say the case does not work.

Another may accept enough variable income for the mortgage to fit.

For more detail, read how mortgage lenders assess affordability.

Does commission affect how much you can borrow?

Yes, it can.

If a lender accepts your commission income, your borrowing potential may be stronger.

If the lender only accepts part of it, your borrowing may be lower.

If the lender ignores it, the mortgage may be assessed on basic salary only.

This can make a large difference for people in sales, recruitment, financial services, technology, estate agency, car sales, account management and other performance-based roles.

The question is not simply “do you earn enough?”

The question is “how will this lender calculate your income?”

Does bonus income affect how much you can borrow?

Yes, bonus income can affect borrowing if the lender includes it.

A regular annual bonus may improve affordability.

A quarterly bonus may also help if there is enough history.

But one-off bonuses are often treated cautiously.

For example:

• a guaranteed annual bonus may be easier to include
• a discretionary bonus with a consistent track record may be partly used
• a one-off exceptional bonus may be ignored
• a bonus that has fallen sharply may be assessed conservatively

Lenders want to avoid basing a long-term mortgage on income that may not continue.

Commission-heavy jobs and mortgages

Commission-heavy jobs are not automatically a problem.

Many people in sales-led roles get mortgages successfully.

This may include:

• car sales executives
• estate agents
• recruiters
• account managers
• financial services sales
• software sales
• telecoms sales
• field sales
• business development managers
• insurance advisers

The important factors are evidence and consistency.

A lender may be more comfortable if you have:

• a stable basic salary
• regular commission
• a strong track record
• clean credit
• sensible deposit
• low debts
• continued employment in the same industry

If commission has recently dropped or only started recently, the case may need more care.

What if most of your income is commission?

If most of your income is commission, lender choice becomes even more important.

Some lenders may be cautious because the income is less guaranteed.

Others may be more flexible if there is a strong track record.

A strong case may include:

• two years’ evidence
• regular commission payments
• stable or rising income
• good credit history
• low committed outgoings
• healthy deposit
• employer confirmation
• continued employment in the same sector

The more variable the income, the more important it is to evidence the pattern.

What if your commission has only recently started?

This can be harder.

Some lenders may not use commission if the track record is too short.

Others may use a smaller percentage.

A lender may ask:

• when did commission start?
• is it part of your contract?
• has the structure changed?
• is it expected to continue?
• did you earn commission in a previous role?
• is the same industry involved?
• does your employer confirm the arrangement?

If commission is new but your role and sector are stable, there may still be options.

What if you recently changed jobs?

A recent job change does not automatically stop you getting a mortgage.

But if your income includes commission or bonuses, the lender may look more carefully.

The case may be stronger if:

• you stayed in the same industry
• the pay structure is similar
• commission history continues
• basic salary is stable
• the new role is permanent
• you are not on probation, or the lender accepts probation
• employer evidence is available

If you have changed to a completely new sales role with no commission track record, options may be more limited.

For more detail, read can you get a mortgage while on probation at work?

Commission, bonuses and probation

Commission income while on probation can be accepted by some lenders, but it depends on the case.

The lender may consider:

• previous experience
• same industry continuity
• basic salary
• commission history
• employer confirmation
• length of probation
• credit profile
• affordability

A borrower who has moved from one sales role to another in the same sector may have a stronger case than someone starting commission-based work for the first time.

This is another area where lender choice matters.

What if your bonus is annual?

Annual bonuses can be considered, but they may need a longer history.

A lender may ask for:

• latest payslip showing bonus
• previous payslips
• P60s
• bonus letter
• employer confirmation
• two-year bonus history
• explanation if bonus has changed

If annual bonuses are consistent, they may help borrowing.

If the bonus was one-off or unusually high, it may be discounted or ignored.

What if your bonus is quarterly or monthly?

Quarterly or monthly bonuses may be easier to evidence because there are more payments to review.

The lender can see whether the income is regular.

They may still average it or use a percentage, but the pattern may be clearer than with a single annual bonus.

This can help where bonus income forms part of normal pay.

What about overtime?

Overtime is not exactly the same as commission or bonus income, but lenders often treat it as another form of variable income.

They may look at:

• how regular it is
• whether it is guaranteed
• whether it appears on payslips
• whether it has continued over time
• whether the employer confirms it is likely to continue

If overtime is a major part of your income, lender selection matters.

This may deserve its own support article later, but for now it fits naturally within the variable-income cluster.

How affordability is assessed

Once the lender decides how much commission or bonus income to include, affordability is assessed normally.

The lender may consider:

• accepted basic salary
• accepted commission
• accepted bonus
• debts
• loans
• car finance
• credit cards
• childcare
• dependants
• household spending
• mortgage term
• deposit size
• credit history
• interest-rate stress

A high commission income does not override affordability.

If your outgoings are high, borrowing may still be limited.

What if your income has gone up recently?

Rising income can help, but lenders may be cautious.

If your commission or bonus has increased significantly, the lender may ask why.

They may want to know whether it is likely to continue.

Useful explanations may include:

• promotion
• larger client base
• higher sales target
• change in commission structure
• move to a stronger employer
• longer time in role
• improved market conditions

Some lenders may still average income over time rather than using the latest high figure in full.

What if your income has gone down?

Falling commission or bonus income can reduce borrowing.

A lender may use a lower recent figure or ask for an explanation.

Reasons might include:

• temporary market conditions
• change in territory
• employer restructure
• maternity or paternity leave
• illness
• reduced hours
• one-off previous high bonus
• change in commission structure

A clear explanation can help, but the lender still needs to be comfortable that the mortgage is affordable.

Can first-time buyers use commission or bonus income?

Yes, first-time buyers may be able to use commission or bonus income.

But they need to prepare carefully.

A first-time buyer relying on variable income should think about:

• deposit size
• basic salary
• commission history
• bonus history
• credit file
• outgoings
• affordability
• job stability
• property price
• costs beyond the deposit

For wider guidance, read first-time buyer mortgages explained.

Can self-employed people use commission or bonus income?

Self-employed income is usually assessed differently.

If you are self-employed and your income varies, the lender may focus on accounts, SA302s, tax year overviews, company profit or contract income instead of payslip commission.

However, some people have mixed income, such as employed salary plus self-employed commission or side income.

In those cases, the lender will need to understand each income source separately.

For more detail, read can you get a mortgage if you’re self-employed?

Can contractors use bonus or commission income?

Contractors are usually assessed based on contract income, day rate, accounts, payslips or umbrella income.

If bonus or commission forms part of the contractor’s pay, the lender may ask for evidence and consistency.

For more detail, read mortgages for contractors: what UK lenders look for.

Can bad credit affect a commission-based mortgage application?

Yes.

If your income is variable and your credit history is not perfect, lender choice becomes more important.

The lender may consider:

• accepted income
• recent credit behaviour
• missed payments
• defaults
• CCJs
• debt levels
• deposit size
• bank statements
• affordability

A stronger deposit and consistent income may help, but bad credit can still reduce options.

For more detail, read can you get a mortgage with bad credit?

Common reasons applications fail

Applications involving commission or bonus income can fail because:

• the wrong lender was chosen
• variable income history is too short
• income was not evidenced clearly
• payslips do not show the pattern
• P60s do not support the figures
• bonus was one-off
• commission recently dropped
• job change created uncertainty
• affordability was too tight
• debts reduced borrowing
• too many credit searches were made
• the case was submitted without explanation

The problem is often not the income itself.

It is how the lender calculates and understands it.

What not to do before applying

Avoid:

• applying to multiple lenders blindly
• relying only on online calculators
• assuming commission will be used in full
• assuming bonus income will be ignored
• changing jobs without checking the impact
• taking new car finance before applying
• increasing credit card balances
• failing to keep payslips and P60s
• hiding income structure from the lender
• using one exceptional bonus as the whole affordability plan

Preparation matters.

How to improve your chances

You can improve your chances by:

• keeping payslips organised
• keeping P60s available
• saving bonus letters
• getting employer confirmation where needed
• reducing unsecured debts
• avoiding new credit before applying
• checking your credit file
• explaining income changes clearly
• checking lender criteria before applying
• using a broker who understands variable income

The aim is to show the lender that your income is reliable enough to support the mortgage.

Why broker advice matters

A broker can be especially useful if your income includes commission or bonuses.

They can help by:

• identifying lenders that accept variable income
• checking how much commission may be used
• checking how bonus income may be assessed
• comparing averaging methods
• avoiding lenders likely to ignore the income
• using affordability tools where available
• explaining the income structure to lenders
• reducing unnecessary credit searches
• improving the chance of first-time approval

This is not just about finding a rate.

It is about finding a lender that understands how you are paid.

👉 Speak to a broker about commission or bonus income mortgages.

Realistic example

A sales manager earns a £32,000 basic salary plus regular commission.

Over the last two years, total income has been around £58,000 to £62,000.

One lender may use only the £32,000 basic salary.

Another lender may include a strong proportion of the commission income because it is regular and evidenced.

The same person could receive very different borrowing results.

That is why lender placement matters.

Related guides for variable-income borrowers

If your pay includes commission, bonuses or other variable income, these guides may also help:

• For the wider non-standard income picture, read can you get a mortgage if you’re self-employed?
• If you work on contracts, read mortgages for contractors: what UK lenders look for.
• If you have recently started working for yourself, see mortgages for newly self-employed borrowers.
• If your income varies month to month, read mortgages for people with irregular income.
• If you need to understand document requirements, read can you get a mortgage without proof of income?
• If affordability is the main concern, see how mortgage lenders assess affordability.
• If your credit profile is not perfect, read can you get a mortgage with bad credit?
• If you are buying your first home, see first-time buyer mortgages explained.

These guides work together because variable-income mortgage cases usually depend on pay structure, track record, documentation, affordability, credit profile and lender criteria.

FAQs about commission and bonus income mortgages

Can commission income be used for a mortgage?

Yes, some lenders will use commission income, especially where it is regular and evidenced.

Can bonus income be used for a mortgage?

Yes, bonus income may be accepted if there is enough history and the lender believes it is likely to continue.

Do lenders use 100% of commission?

Some may, but many use only a percentage or average the income. Criteria varies by lender.

Do lenders use annual bonuses?

Some lenders may use annual bonuses if they are consistent and evidenced. One-off bonuses are often treated cautiously.

How many payslips do I need?

This depends on the lender, but recent payslips and P60s are commonly requested.

What if most of my income is commission?

It may still be possible, but lender choice becomes more important because some lenders are cautious with highly variable income.

Can I get a mortgage if I recently changed jobs?

Possibly, especially if you stayed in the same industry and have a similar pay structure, but lender criteria varies.

Does probation affect commission income?

It can. Some lenders may still consider the case if the wider profile is strong and there is relevant income history.

Do commission-paid borrowers pay higher rates?

Not automatically. Rates depend on the lender, loan-to-value, credit profile and overall risk.

Should I use a broker if my income includes commission or bonuses?

It can be very helpful because lenders calculate variable income differently.

Bottom line

Being paid in commission or bonuses does not stop you getting a mortgage.

It changes the strategy.

The lender needs to understand whether the income is reliable, evidenced and likely to continue.

A strong case may include regular commission, consistent bonus history, clean credit, manageable debts and clear documentation.

The wrong lender may ignore income that another lender would use.

Handled properly, commission and bonus income can support a strong mortgage application.

Handled badly, it can be misunderstood, underused or declined unnecessarily.

👉 Check your mortgage options today — free, quick and no obligation.