What counts as income for a mortgage?
Salary, bonuses, self-employed profit, benefits and more. Here is how lenders look at income when you apply, and why the answer is not the same everywhere.
Asking what counts as income for a mortgage is one of the smartest things you can do before applying. Lenders do not all treat income in the same way, and a small difference can change how much you can borrow.
Below is a guide to the most common types of income and how they are often treated. Every lender is different, so please treat this as a starting point. Your first chat with us is free and there is no obligation.
Employed income
Basic salary is the most straightforward. Many lenders also count regular overtime, bonuses and commission, but they may only use a percentage of it, or want to see a track record over one to three years.
Some lenders also look at your contract type and how long you have been in the job.
Self-employed and company director income
Lenders usually ask for a few years of accounts, tax calculations or accountant’s references. Sole traders are often assessed on profit, while company directors may be assessed on salary and dividends, or on salary plus share of profit, depending on the lender.
If you are self-employed, it can help to talk to an adviser early, as lenders vary a lot in how they treat this.
Other types of income
Some lenders may consider rental income, pension income, certain benefits, or maintenance payments. Each has its own rules, and some may not be counted at all. We will tell you what looks realistic for your situation. For first time buyers in Portsmouth, see first time buyer mortgage in Portsmouth.
What counts as income for a mortgage: your questions answered
Do bonuses count as income for a mortgage?
Often partly. Many lenders will count some bonus or commission income if you can show it is regular, but not all lenders do and some use a percentage.
Can I get a mortgage if I am self-employed?
Often, yes. Lenders typically want to see accounts or tax calculations. We cannot guarantee an outcome, but we will tell you what looks possible.
Does benefit income count?
Some lenders count certain benefits, others do not. It depends on the type of benefit and the lender.
Do lenders look at my spending too?
Yes. They look at your regular outgoings and debts as well as your income, to check the mortgage is affordable.
Do I need to pay to speak to an adviser?
Your first chat with us is free and there is no obligation. We will explain how we are paid before you decide to go ahead.
Your first chat is free, and there's no obligation.
Tell us what you're planning. We'll tell you honestly what's possible.