For many professionals, a significant proportion of their income comes from commission rather than basic salary. Whether you work in recruitment, sales, financial services, estate agency or another commission-based role, you may be wondering:
Can commission income be used for a mortgage?
The good news is that many lenders will consider commission income when assessing affordability. However, the amount they are willing to use can vary significantly from lender to lender. In fact, for some borrowers, commission can make up a substantial proportion of their overall earnings. The key is finding a lender that understands how your income is structured.
Key Takeaways
- Many lenders will accept commission income for mortgage applications
- Some lenders will use 100% of commission income, while others may use less
- The length and consistency of earnings are often important
- Borrowing potential can vary significantly between lenders
- Specialist mortgage advice can be valuable for complex income cases
Can Mortgage Lenders Use Commission Income?
Yes. Many mortgage lenders are willing to use commission income when calculating affordability.
This is particularly common for:
- Sales professionals
- Recruiters
- Estate agents
- Financial advisers
- Business development managers
- Account managers
In some industries, commission forms a substantial part of overall earnings and lenders recognise this. In our experience, lenders are generally more comfortable where commission has been received consistently over a number of years and forms a regular part of a borrower’s remuneration package.
How Do Lenders Assess Commission Income?
Different lenders assess commission income in different ways.
Some may:
- Use 100% of commission income
- Average commission over two years
- Average commission over three years
- Apply a percentage reduction
- Use only part of the commission received
This is why two lenders can sometimes produce very different borrowing figures for the same applicant.
How Much Commission History Do You Need?
Many lenders prefer to see a track record of commission earnings.
Typically, lenders may ask for:
- Recent payslips
- P60s
- Employment contracts
- Bonus and commission statements
The longer and more consistent the history, the easier it can be for lenders to assess affordability. However, some lenders are more flexible than others.
Can Commission Income Increase How Much I Can Borrow?
Potentially, yes. For borrowers whose commission forms a significant proportion of total income, including it in affordability calculations can dramatically increase borrowing potential.
For example:
A borrower earning:
- £60,000 basic salary
- £40,000 commission
May be assessed very differently from someone earning only the £60,000 basic salary. This can have a major impact on mortgage options and property choices.
What If My Commission Varies Each Year?
This is very common. Many lenders understand that commission income may fluctuate depending on:
- Market conditions
- Individual performance
- Industry cycles
Some lenders will average earnings over multiple years to account for this variation. Others may take a more cautious approach.
Why Does Lender Choice Matter?
One of the biggest misconceptions in the mortgage market is that all lenders assess affordability in the same way. They do not.
For borrowers with:
- Commission income
- Bonus income
- RSUs
- Share income
- Complex remuneration structures
The difference between lenders can be substantial. In some cases, borrowing capacity can vary by hundreds of thousands of pounds. We regularly see lenders take very different approaches to commission income. While one lender may only use part of the commission earned, another may be willing to use the full amount, resulting in a significant difference in borrowing potential.
How To Improve Your Mortgage Application
If commission forms a large part of your income, it can help to:
- Keep records of historic earnings
- Retain payslips and P60s
- Demonstrate consistency where possible
- Avoid unnecessary credit issues
- Work with a broker experienced in complex income cases
- Maintain stable employment where possible
Preparation can often make the process smoother and improve lender confidence. The more evidence you can provide that your commission income is sustainable, the more comfortable many lenders will be.
Oportfolio Insight
At Oportfolio Mortgages, we regularly help professionals whose earnings go beyond a simple basic salary. In our experience, commission income is one of the most misunderstood areas of mortgage lending. Choosing the right lender can significantly improve borrowing potential, expand mortgage options and help borrowers secure properties that may otherwise be beyond reach.
Speak To Oportfolio Mortgages
If you receive commission income and would like to understand your mortgage options, feel free to get in touch. We regularly help professionals, business owners and higher earners secure mortgages where income assessment is not always straightforward. Whether you receive commission, bonuses, RSUs or other forms of variable income, we can help identify lenders that understand your circumstances.
