Barclays has made a significant change to its mortgage affordability criteria, expanding the amount of bonus, overtime, and commission income that can be used in lending assessments. Under the new approach, Barclays will now include variable income up to four times a borrower’s basic salary plus allowances, a major increase from the previous limit, which capped total income at just the value of the basic salary and allowances.
This move could be transformative for borrowers in sectors where variable pay forms a large portion of total income, such as sales, finance, tech, and professional services, helping them unlock greater borrowing potential when purchasing or remortgaging a property. In this article, we are going to run through these changes in more detail.
How the new Barclays income rules work
Under the updated criteria, Barclays will now allow a borrower’s income assessment to include significantly more of their performance-based earnings.
For example:
A customer earning a basic salary of £30,000 with £120,000 in commission could now have up to £150,000 total income considered for mortgage affordability.
Previously, the same borrower’s total assessable income would have been capped at just £60,000.
This means borrowers with substantial bonus or commission earnings could potentially qualify for larger loans, giving them more flexibility in competitive housing markets.
Why Barclays has made this change
The change reflects Barclays’ ongoing efforts to modernise its mortgage affordability assessments, ensuring they reflect the realities of modern income structures.
In today’s economy, many professionals, particularly in sales, consulting, or finance, rely on variable income streams that fluctuate month to month. Barclays’ move recognises this, providing greater access to homeownership and remortgaging opportunities for those with high but irregular earnings.
The update follows a string of other affordability enhancements, including adjustments for:
- Self-employed borrowers
- Interest-only mortgage applicants
- Buy-to-let landlords
Who Benefits from Barclays’ New Mortgage Policy?
This update is particularly good news for:
- Commission-based professionals (e.g. estate agents, sales directors, brokers, consultants)
- Bonus-heavy employees in finance, tech, and corporate roles
- Overtime earners, such as healthcare workers and engineers, whose total income often exceeds base salary
- Families and higher earners looking to maximise affordability for larger home purchases
By factoring in a higher proportion of these income types, Barclays could help many buyers increase their borrowing capacity by tens or even hundreds of thousands of pounds.
Additional Barclays Lending Enhancements
This latest update builds on other recent Barclays mortgage policy improvements, including:
- Higher maximum loan amounts for high-LTV mortgages, up to £640,000 for houses and £310,000 for flats with a 10% deposit.
- Mortgage Boost – an innovative scheme allowing family or friends to support a buyer’s borrowing capacity without providing cash directly.
- Zero-deposit Right to Buy mortgages, helping more tenants become homeowners.
- Enhanced affordability for families, potentially allowing up to £30,750 more borrowing in some cases.
What Is Mortgage Affordability and Why Does It Matter?
Mortgage affordability refers to how much a lender determines a borrower can safely repay each month, based on their income and expenses. Lenders typically assess income from basic salary, bonuses, commission, overtime, and allowances, but not all lenders weigh these equally.
By allowing a greater share of bonus or commission income, Barclays is effectively giving borrowers more borrowing power without relaxing affordability checks, as all applications remain subject to standard credit and income verification.
FAQs: Barclays mortgage affordability changes
Q: How much of my bonus or commission can Barclays now use in affordability?
A: Barclays will now include up to four times your basic salary plus allowances when factoring in bonus, overtime, or commission income.
Q: Does the income need to be regular?
A: Yes, the income must be paid at least monthly and evidenced as a consistent source of income.
Q: Does this apply to remortgages as well as purchases?
A: Yes, the changes apply to both residential purchase and remortgage applications.
Q: Will this make it easier to get a mortgage with a high commission income?
A: Yes, borrowers with substantial variable income should see improved affordability results, potentially qualifying for higher loan amounts
Q: Can I combine this with Barclays’ other schemes like Mortgage Boost or Right to Buy?
A: In many cases, yes. Speak with an independent mortgage broker to confirm eligibility and the best combination of Barclays products for your circumstances.
Expert Comment From Oportfolio Mortgages
“This change from Barclays is a really positive step for borrowers whose income doesn’t follow a traditional pattern,” says Louis Mason, Head of Marketing and Communications at Oportfolio Mortgages.
“Professionals who rely on commission or bonuses often find that lenders underestimate their true affordability. By recognising more of this income, Barclays is making mortgages more accessible to a huge section of the market.”
A Welcome Boost for Modern Earners
Barclays’ decision to expand its affordability assessment to include more bonus, overtime, and commission income is a clear acknowledgment of how people earn today. It’s a step that could open the door to thousands of buyers and homeowners who were previously held back by restrictive lending rules.
If you earn a significant portion of your income from commission, bonus, or overtime pay, now may be the perfect time to review your mortgage options. At Oportfolio Mortgages, we help professionals, families, and investors find the best mortgage deals tailored to their income. Contact Oportfolio Mortgages today to see how much you could borrow under Barclays’ new criteria.
