Can I Get A Mortgage With Commission Income?

Yes. Many UK mortgage lenders can use commission income when assessing how much you can borrow, alongside your basic salary.

The important point is that lenders do not all calculate commission in the same way. Some may use 100% of regular commission, while others may use a percentage, take an average over a set period or require a longer track record before including it.

This can make a significant difference if commission forms a large proportion of your total earnings.

At Oportfolio Mortgages, we regularly arrange mortgages for professionals with basic salary plus commission, including people working in sales, recruitment, financial services, property and other performance-related roles. The right lender will depend on how much commission you earn, how regularly you receive it and how long you have been earning it.

Quick answer

• Commission income can be used for a mortgage with many UK lenders.
• Lenders may assess monthly, quarterly or annual commission differently.
• Some lenders can use 100% of commission where their criteria are met.
• Others may average your commission or only use a proportion of it.
• Payslips, P60s and sometimes your employment contract may be required.
• If commission makes up a large part of your income, lender selection can materially affect how much you can borrow.

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 Mortgage Lenders Calculate Commission Income?

There is no single calculation that every mortgage lender uses for commission income.

Depending on the lender and how your commission is paid, they may:

• use an average of recent monthly commission;
• look at commission received over the last 3, 6 or 12 months;
• compare recent earnings with your previous year’s P60;
• average commission over a longer period where earnings fluctuate;
• use a percentage of your commission rather than the full amount; or
• potentially use 100% of regular commission where their criteria are satisfied.

For example, someone earning a £60,000 basic salary plus £40,000 of regular annual commission should not assume that every lender will assess them on £100,000 of income.

One lender might be prepared to use most or all of the commission, while another could take a more cautious approach. That difference can materially change the mortgage available.

Example: calculating commission for a mortgage

Suppose your basic salary is £60,000 and you received the following commission over the last six months:

Month	Commission
January	£3,000
February	£3,500
March	£4,000
April	£3,250
May	£4,250
June	£4,000
Total	£22,000

Your average monthly commission over that period would be approximately £3,667, equivalent to around £44,000 a year if annualised.

That does not mean every lender would automatically assess your income as £104,000 (£60,000 salary + £44,000 commission). A lender may compare that figure with your P60, previous commission history and current payslips before deciding how much of the additional income it is comfortable using.

This is why calculating your commission yourself can provide a useful indication, but it does not tell you exactly how much you will be able to borrow.

How Much Commission History Do I Need for a Mortgage?

There is no universal minimum period that applies to every mortgage lender.

A longer and consistent history can make commission easier for a lender to assess, but borrowers should not assume that they automatically need two or three years of commission before they can get a mortgage.

Depending on the lender and circumstances, evidence could include:

• recent payslips showing commission payments;
• your latest P60;
• previous P60s where a longer earnings history is required;
• an employment contract;
• commission or bonus statements; and
• confirmation from your employer where appropriate.

The frequency of your commission also matters. Someone receiving commission every month may be assessed differently from someone receiving a large quarterly or annual payment.

If you have only recently started receiving commission, changed employer or moved into a new commission structure, your options may be narrower, but this does not necessarily mean the income cannot be used.

Which Mortgage Lender Is Best for Commission-Based Income?

There isn’t one mortgage lender that is universally best for commission income.

The most suitable lender depends on factors including:

• your basic salary;
• the amount of commission you receive;
• whether commission is monthly, quarterly or annual;
• how long you have been earning it;
• whether the amount is stable, increasing or decreasing;
• your overall borrowing requirement;
• deposit and loan-to-value;
• existing financial commitments; and
• the rest of your mortgage application.

This is particularly important for higher earners.

For example, two applicants could both earn £150,000 a year overall but have very different income structures. Someone receiving £130,000 basic salary plus £20,000 commission may fit lender criteria differently from someone earning £60,000 basic salary plus £90,000 commission.

The total income is the same, but the mortgage affordability assessment may not be.

Rather than looking for a single “best lender for commission income”, the aim should be to identify the lender whose affordability calculation and criteria work best with your particular remuneration structure.

Can Commission Income Increase How Much I Can Borrow?

Yes, potentially. If commission makes up a significant proportion of your total earnings, a lender that is willing to include more of that income in its affordability assessment could allow you to borrow more than a lender that relies mainly on your basic salary.

For example, consider someone earning:

• £60,000 basic salary
• £40,000 annual commission
• £100,000 total annual income

If one lender assesses affordability predominantly using the £60,000 basic salary, the amount available could be very different from a lender that is comfortable using some or all of the £40,000 commission as well.

This does not mean every lender will treat the applicant as earning £100,000. The amount of commission accepted will depend on the lender’s criteria, how regularly it is received, the applicant’s track record and whether recent earnings appear sustainable.

The difference becomes particularly important for professionals whose commission represents a large proportion of their overall remuneration. Choosing a lender whose affordability model works well with your income structure can therefore have a significant effect on your borrowing potential.

You can get an initial indication of your borrowing potential using our mortgage affordability calculator. However, where a large proportion of your earnings comes from commission, a broker assessment can provide a more accurate picture because lender calculations can vary considerably.

What If My Commission Varies Each Year?

Variable commission does not automatically prevent it from being used for mortgage affordability.

Mortgage lenders understand that commission can fluctuate because of individual performance, market conditions, seasonal trends and changes within an industry. The important question is usually whether the lender considers the income sustainable.

Depending on the lender, it may look at:

• commission received over recent months;
• your latest P60;
• commission earned in previous years;
• whether earnings are increasing, stable or declining;
• how frequently commission is paid; and
• how much of your overall income depends on commission.

Where commission fluctuates significantly, a lender may average previous earnings or use a more conservative figure rather than simply annualising your most recent payment.

For example, receiving unusually high commission during the latest three months does not necessarily mean a lender will multiply that figure to calculate your expected annual income. It may compare those payments with your longer-term earnings history before deciding what income to use.

Equally, a lower recent month does not necessarily mean your commission will be ignored if you can demonstrate a strong and consistent track record over a longer period.

This is one reason lender selection matters so much for commission-based applicants: two lenders can look at the same earnings history and arrive at different affordability figures.

Can Monthly, Quarterly or Annual Commission Be Used for a Mortgage?

Potentially, yes. Commission does not necessarily need to be paid monthly for a mortgage lender to consider it.

Applicants may receive commission:

• monthly;
• quarterly;
• annually;
• at irregular points during the year; or
• when particular sales or performance targets are achieved.

How frequently you receive commission can affect the evidence a lender requests and the way it calculates your income.

Regular monthly commission may be relatively straightforward to demonstrate through recent payslips. Quarterly or annual commission may require the lender to look further back at P60s, previous payments or other evidence to establish a reliable earnings history.

This can be particularly important if you apply for a mortgage shortly before or after a large commission payment. Rather than assuming the latest payment will simply be added to your basic salary, it is worth establishing how a prospective lender will assess it before submitting an application.

Can I Get a Mortgage If Most of My Income Comes From Commission?

Yes, it may still be possible to get a mortgage where commission represents a large proportion of your total earnings.

However, lender selection becomes particularly important when there is a significant difference between your basic salary and your overall remuneration.

For example, someone earning a £50,000 basic salary plus £70,000 of commission has total earnings of £120,000, but their mortgage options could vary considerably depending on how much of that £70,000 each lender is prepared to use.

A lender that takes a cautious approach to variable income may produce a substantially lower affordability figure than one that is comfortable with the applicant’s commission history.

This is why borrowers with high commission should not judge their mortgage affordability solely from a basic online income multiple. The way the lender assesses the composition of the income can be just as important as the overall amount earned.

This is particularly relevant for sales professionals, recruiters, financial-services professionals and other higher earners whose remuneration is deliberately structured around a lower basic salary and significant performance-related income.

Can I Get a Mortgage With Commission Income After Changing Jobs?

Potentially. Starting a new job does not automatically mean that commission income cannot be considered, but having a shorter track record with your new employer can affect which lenders are suitable.

A lender may want to understand whether:

• you have previously worked in a similar role;
• you earned commission in your previous employment;
• the new commission structure is guaranteed or performance-related;
• you are still within a probationary period; and
• there is sufficient evidence to establish your likely ongoing earnings.

Someone who has recently changed employer but has a long history of earning commission within the same industry may therefore be viewed differently from someone receiving commission for the first time.

If you are planning to change jobs around the same time as applying for a mortgage, read our guide to how changing jobs can affect a mortgage application.

Why Can Mortgage Affordability Vary Between Lenders?

Mortgage lenders do not all assess income and affordability in the same way.

This is particularly important for borrowers whose remuneration includes:

• commission;
• bonus income;
• RSUs;
• share income; or
• other forms of variable or complex remuneration.

One lender may use a smaller proportion of variable income, while another may be willing to use considerably more where the applicant meets its criteria. Lenders can also differ in the period over which they assess commission and the evidence they require.

The difference can become particularly significant for higher earners.

Someone should therefore not assume that an affordability figure from their existing bank represents the maximum mortgage available across the market.

At Oportfolio Mortgages, we regularly see different lenders produce different outcomes from the same income structure. The objective is not simply to find a lender that “accepts commission”, but to identify one whose overall affordability calculation and lending criteria are appropriate for the client’s circumstances.

How Can I Prepare for a Mortgage Application With Commission Income?

If commission forms an important part of your earnings, preparing the right evidence before approaching a lender can make the mortgage process much smoother.

Keep your payslips and P60s

Recent payslips can demonstrate the commission you are currently receiving, while P60s can help establish a longer-term earnings history. Depending on the lender, more than one year’s evidence may be useful.

Understand how your commission is paid

Be clear about whether your commission is monthly, quarterly, annual or irregular and whether it is contractual, discretionary or linked to particular performance targets.

Keep evidence of your earnings history

If your commission fluctuates, retaining records from previous years can help demonstrate that variable payments are a normal and sustainable part of your remuneration.

Check your employment documentation

Your employment contract or other documentation may help explain your remuneration structure, particularly if you have recently started a new role or your commission arrangements have changed.

Avoid making assumptions based on your basic salary

An online affordability calculator or lender that does not fully account for your commission could significantly underestimate your borrowing potential.

Assess lender criteria before applying

Avoid making multiple applications simply to see which lender will accept your income. Establishing how a lender is likely to assess your commission beforehand can reduce the risk of applying to a lender whose criteria do not suit your circumstances.

A mortgage broker experienced with variable and complex income can compare how different lenders are likely to assess the same earnings before an application is submitted.

Oportfolio Insight

From our experience arranging mortgages for clients with commission income, one of the most common mistakes is assuming that total earnings shown on a P60 will automatically be treated in the same way by every mortgage lender.

In practice, the structure and history of the income can be just as important as the headline figure.

We regularly work with professionals whose basic salary represents only part of their overall remuneration. In these cases, we look at how the commission is paid, the applicant’s earnings history and the evidence available before considering which lenders are likely to assess the income most favourably.

This can be particularly important for higher earners, where even a relatively small difference in the proportion of commission a lender is prepared to use can have a significant effect on overall affordability.

The key is to assess the income structure before choosing the lender, rather than choosing a lender first and hoping its affordability calculation works.

Real Case: Buying a £450,000 Property With Commission Income

Property value: £450,000
Deposit: £100,000
Mortgage required: £350,000
Basic salary: £35,000
Commission income: £50,000
Employment: Estate agency

The challenge

Our client wanted to purchase a £450,000 property on their sole income. Although they earned around £85,000 in total, £50,000 of this came from commission, which varied from month to month.

This created an affordability issue because some lenders would either use a reduced proportion of the commission or were not comfortable using enough of the variable income to support the £350,000 mortgage required.

What we did

We reviewed the client’s employment history, recent commission payments and overall earnings shown on their P60.

Rather than relying solely on their £35,000 basic salary or approaching lenders with a more restrictive approach to variable income, we identified a lender that was comfortable with the client’s established earnings history and could use a much larger proportion of their commission when assessing affordability.

This allowed the client’s overall income to be represented more accurately in the lender’s affordability calculation.

The outcome

The client was able to secure the £350,000 mortgage required and purchase the £450,000 property in their sole name.

This case demonstrates why commission-based borrowers should not assume that an affordability assessment from one lender represents their maximum borrowing potential. Where commission makes up a significant proportion of earnings, the way a lender assesses that income can materially affect the mortgage available.

Speak to Oportfolio About a Commission Income Mortgage

If commission makes up part of your earnings, we can assess how different mortgage lenders are likely to treat your income and help you understand your realistic borrowing options before you apply.

At Oportfolio Mortgages, we regularly work with professionals and higher earners whose remuneration includes commission, bonuses and other forms of variable income.

Whether you receive commission monthly, quarterly or annually, or have recently changed employer, we can review your circumstances and identify lenders whose affordability criteria are suited to your income structure.

Speak to a Mortgage Adviser.