Commission Income Mortgage FAQ
General information only. This is not financial advice.
Last reviewed: 2026-06-06
Can I get a mortgage on commission income in the UK?
Yes. Commission income is accepted by most UK mortgage lenders, but how much is counted towards affordability varies. Lenders typically average commission over the last 12 to 24 months using payslips and P60s. Some lenders cap the commission element at 50% of total income; others accept 100% where the track record is consistent. A specialist broker can identify lenders most favourable to your specific commission structure.
How do mortgage lenders calculate commission income?
Most lenders average your commission over the last 12 or 24 months of payslips and P60s. Some take the lower of the two averages; others use the most recent 12 months if that is more favourable. A minority of lenders only accept guaranteed base salary and exclude commission entirely. If your commission varies significantly year to year, a longer track record helps — two to three years of consistent commission income gives lenders much more confidence in including it.
What documents do I need for a commission income mortgage?
You will typically need your last three months of payslips showing both base salary and commission; your last two P60s; bank statements for the past three months showing commission credits; and your employment contract confirming the commission structure. If commission is paid as a periodic bonus rather than monthly, lenders may treat it differently — confirm the document requirements with your broker before applying.
Does OTE (On-Target Earnings) count as income for a mortgage?
OTE is treated with caution because it is a projection, not actual pay. Lenders will not lend against OTE alone — they want to see actual commission received over the past 12 to 24 months. Once your track record shows you regularly achieve or exceed OTE, lenders become more comfortable using that income in affordability calculations. New commission-based roles with no track record in the role are significantly harder to place.
What if my commission income has dropped recently?
A recent drop in commission income is a concern as lenders may average down your usable income or question its sustainability. If the dip is temporary and explainable — restructured territory, change in sales cycle, parental leave — a letter from your employer providing context can help. Some lenders weight the most recent 12 months more heavily; others average over 24 months, smoothing out a short-term dip. The strength of your base salary and overall credit profile will also influence how significant a barrier this becomes.
Can I get a mortgage if I have just started a new commission-based job?
Starting a new commission-based role makes applications harder. Most lenders want at least one full P60 in the new role. However, if you have a strong track record of commission earnings in a similar previous role in the same sector, some lenders will take a more pragmatic view — particularly where your base salary alone is sufficient for the requested loan. A specialist broker is essential to find the lenders willing to assess your case on its specific merits.
Risk warning
Your home may be repossessed if you do not keep up repayments on your mortgage. Income figures used in affordability calculations may differ from your stated earnings.
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