Case Study:Â Helping a London Buyer Use Bonus Income to Secure Their Mortgage
This mortgage case study is based on a real client scenario. Details have been simplified to protect client confidentiality.
For many professionals in London, a large portion of income comes from bonuses rather than basic salary. However, securing a mortgage with bonus income can sometimes be more complicated because lenders assess this type of income differently.
In this case study, we explain how choosing the right lender helped a London buyer secure a mortgage by correctly recognising their bonus income.
The situation
Our client worked in financial services and had a strong overall income, but a large proportion of their earnings came from an annual bonus. They had already spoken with a lender directly, who only considered a small percentage of their bonus income when assessing affordability. As a result, the borrowing available was lower than expected, which limited the property options they could consider. The client wanted to understand whether other lenders might assess their income differently.
The challenge
Mortgage lenders take different approaches when assessing bonus income.
Some lenders:
- Only consider a small percentage of bonus income
- Require several years of bonus history
- Apply conservative affordability calculations
Some UK lenders may consider 50–75% of regular bonus income when assessing mortgage affordability. For professionals whose earnings include large bonuses, this can significantly reduce the borrowing available. If your income includes bonuses or commission, understanding how lenders treat this income can make a significant difference to the mortgage you can obtain.
What we did
We reviewed the client’s full income profile and explored lenders with more flexible bonus income criteria.
This included:
• Analysing bonus history over previous years
• Identifying lenders comfortable with variable income
• Comparing affordability models across multiple lenders
Certain lenders are able to consider a larger proportion of bonus income, particularly for established professionals with consistent earnings.
The result
By matching the client with a lender that recognised a higher proportion of their bonus income, we were able to secure a mortgage that reflected their true earning capacity.
Key outcome:
- Bonus income included in affordability assessment
- Mortgage approved with suitable borrowing level
- Client able to proceed with their property purchase
The key factor wasn’t simply interest rates, it was finding a lender whose income criteria matched the client’s situation.
Oportfolio insight
Bonus income is common among professionals working in sectors such as finance, law, consulting, and technology. However, lenders treat this type of income very differently. Two lenders offering similar mortgage rates may assess bonus income in completely different ways, which can significantly affect borrowing amounts. Choosing the right lender can therefore make a major difference.
For some high-earning professionals, bonus income can represent a significant portion of total earnings, which makes lender criteria particularly important when calculating mortgage affordability.
Need help with a mortgage that includes bonus income?
If part of your income comes from bonuses, commissions or other variable earnings, it’s important to work with lenders who understand how to assess this type of income. At Oportfolio Mortgages, we help clients match their income profile to lenders whose criteria are most suitable.
If you’re unsure how your bonus income might be treated by lenders, book a quick affordability review and we’ll help you explore your options.
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