Do Lenders Count Overtime, Bonus and Commission for Mortgages?

How lenders treat overtime

Overtime is one of the most inconsistently treated income types across UK mortgage lenders. If you regularly work overtime, the lender you choose can make a significant difference to how much you can borrow.

100% of overtime accepted: Some lenders accept your full overtime earnings, provided you can demonstrate consistency. They typically want to see at least 6 to 12 months of regular overtime on your payslips. These lenders treat overtime almost the same as basic salary in their affordability calculation.

50% of overtime accepted: Many high-street lenders take a more cautious approach and only count half of your overtime income. Their reasoning is that overtime is not guaranteed and could reduce in future. Even at 50%, this still adds meaningful borrowing capacity.

Overtime ignored entirely: A small number of lenders do not factor overtime into their affordability calculation at all, regardless of how consistent it has been. If you rely on overtime to boost your borrowing, these lenders will undervalue your true earning capacity.

Most lenders require overtime to have been received for at least 12 months, though some will accept 6 months if it is contractual. They typically use an average of your overtime over the qualifying period rather than your most recent figure.

Bonus income: guaranteed vs non-guaranteed

How lenders assess bonus income depends heavily on whether it is guaranteed or discretionary, and how long you have been receiving it.

Guaranteed bonus: If your contract specifies a guaranteed bonus amount, most lenders treat this similarly to basic salary. You will typically need your contract and at least one year's evidence of payment.

Non-guaranteed (discretionary) bonus: This is where lender approaches diverge significantly. Some lenders take an average of the last two years of bonus payments. Others use the lower of the last two years, which protects against a declining trend. Some use an average of three years. And a few will not consider non-guaranteed bonus at all.

The qualifying period also matters. Most lenders want at least two years of bonus history to establish a pattern. If you have recently started a new job, your first-year bonus may not count with many lenders until you have a second year to compare against.

For large bonuses, the impact on borrowing is substantial. A £10,000 annual bonus accepted at 100% could add £45,000 to £55,000 to your maximum borrowing at typical income multiples. Accepted at 50% or averaged down, the boost is proportionally lower.

Commission income and 100% commission roles

Commission-based income is common in sales, recruitment, estate agency, and financial services roles. How lenders assess it depends on the structure of your pay.

Basic salary plus commission: If you receive a base salary with commission on top, most lenders will accept the basic salary in full and assess the commission element separately. Commission is usually averaged over two years, similar to bonus income.

100% commission roles: If your entire income is commission-based, the assessment becomes more complex. Many high-street lenders are cautious with 100% commission earners and may apply stricter criteria or lower multiples. However, several specialist lenders are comfortable with commission-only income, provided you have at least two years of consistent earnings.

Some lenders that specialise in professional or sales roles are notably more generous. They understand that commission earners often have higher total compensation than salaried workers at the same level, and their affordability models reflect this.

Documentation is key for commission income. You will typically need two to three years of P60s or tax calculations, recent payslips showing commission payments, and potentially your employment contract confirming the commission structure.

Shift allowance, car allowance, and London weighting

Beyond overtime, bonus, and commission, several other income supplements can boost your affordability if the right lender is used.

Shift allowance: If you work unsociable hours and receive a shift premium, some lenders include this in their income calculation. It is treated similarly to overtime, with lenders typically requiring 12 months of history and using an average figure.

Car allowance: A regular car allowance paid through your salary is accepted by many lenders as part of your income. This can be a meaningful addition, as car allowances of £4,000 to £8,000 per year are common in roles that involve regular travel. Some lenders accept it in full, while others discount it.

London weighting: If you receive a London weighting supplement, most lenders will include this as part of your basic income. Since it is a fixed contractual amount, it is generally treated favourably.

The pattern is consistent: for every type of supplementary income, there are lenders who accept it generously and lenders who discount or ignore it. The only way to know which lenders value your specific income mix is to check across the market.

Why this matters more than you think

The impact of variable income on mortgage affordability is often underestimated. Consider this example:

You earn a basic salary of £35,000 plus regular overtime of £5,000 per year. At a lender that ignores overtime, your maximum borrowing at 4.5x would be £157,500. At a lender that accepts 100% of your overtime, the calculation becomes £40,000 x 4.5 = £180,000. That is £22,500 more borrowing from a relatively modest £5,000 of overtime.

Now scale this up. If you earn £10,000 in overtime plus a £8,000 bonus, the gap between the most and least generous lender can easily exceed £50,000 in maximum borrowing. For many buyers, this is the difference between affording the home they want and having to compromise.

This is also why generic online calculators that ask only for your basic salary are so misleading. They ignore the variable income components that make up a significant part of many people's real earnings, and they cannot show you how different lenders would assess the same income.

How our AI payslip feature helps

One of the challenges with variable income is accurately separating out each component. Your payslip contains your basic pay, overtime, bonus, commission, allowances, and deductions, but entering these manually into a calculator is tedious and error-prone.

Mortgage Affordability includes an AI-powered payslip reader that extracts your exact income breakdown automatically. Upload a photo or PDF of your payslip and the system identifies each income component, annualises it correctly, and feeds it directly into the affordability calculations for all 60+ lenders.

This means each lender receives the precise figures it needs to give you an accurate result. A lender that accepts 100% of overtime gets your overtime figure. A lender that averages bonus over two years gets the relevant data. The result is a personalised picture of your borrowing capacity across the whole market.

Check all lenders with your exact income

If variable income is a meaningful part of your earnings, choosing the right lender could be worth tens of thousands of pounds in additional borrowing. The only way to find that lender is to check across the market with your specific income breakdown.

How Much of Your Overtime, Bonus and Commission Do Lenders Count?

The percentage of variable income a lender counts makes a direct difference to how much you can borrow. Some lenders accept 100% of overtime and bonus, while others cap it at 50% or 60%. The table below shows how a selection of UK lenders compare.

Last updated: April 2026