Can I Use My Bonus for a Mortgage? What High Earners Need to Know
DIRECTOR AND MORTGAGE ADVISER
Bonuses often make up a substantial part of compensation for lawyers, bankers, and finance professionals — in some cases, exceeding base salary. But when it comes to securing a mortgage, bonus income is often treated more cautiously than regular pay.
If your bonus is six figures or more, understanding how it’s assessed could make the difference between a £1m mortgage approval — or falling short on affordability.
In this guide, we explain how bonus income is treated by lenders, which rules apply, and what to do if you’ve recently changed roles or firms
How Mortgage Lenders View Bonus Income
While your salary is predictable, bonus income isn’t always — at least from a lender’s perspective. They’ll want to understand:
Is the bonus recurring or one-off?
How long have you been receiving it?
Is it performance-based, discretionary, or contractual?
Have you recently changed employers?
Because of this uncertainty, most lenders classify bonuses as variable income and apply specific rules when deciding how much of it they’ll count.
Typical Lender Approaches to Bonus Income
Most will average your bonuses over 2 years
If you received:
£125k last year
£150k the year before
They may average that to £137.5k, and include 50–100% of that figure in your affordability assessment — depending on their policy and your overall profile.
Some will use the most recent bonus
Select lenders — especially private banks or high-net-worth-friendly lenders — may use just your most recent bonus, even if it’s a sharp uplift from prior years. This is more likely if:
You’ve progressed in your career
The bonus is contractual or expected to continue
You can provide written confirmation from your employer
Changed jobs? It depends...
If you’ve moved firms recently:
Conservative lenders may want 2 years of bonus history from the same employer
More flexible lenders will average bonus income across jobs, as long as you’ve stayed in a comparable role and sector
This flexibility is particularly helpful for fast-moving professionals in law, finance, and consulting.
Recent Case Studies
What Documentation Will You Need?
To include bonus income in your mortgage application, you may be asked for:
2 years of P60s
Payslips showing bonus payments
A letter from your employer confirming:
The nature of your bonus
Whether it is expected to continue
Your employment contract, especially if bonuses are performance-linked or contractual
Which Lenders Are Best for Bonus Income?
While many high street lenders apply rigid affordability rules by default, most have “large loan teams” or specialist underwriting desks that take a more flexible approach for higher-value cases.
These teams typically handle loans of £750k–£1m+, though the threshold varies by lender
Applications are assessed by senior underwriters with their own lending mandate, not just automated systems
They’re more open to including a larger portion bonus income, especially when well-documented
If your bonus makes up a substantial portion of your earnings — or your total borrowing exceeds £1m — the key is working with a broker who can access these specialist channels.
Speak To An Expert Today
Get in touch for a fee free, no-obligation chat about how we might be able to help you.
Tips to Maximise Your Bonus in Mortgage Applications
Time your application strategically – If this year’s bonus was a jump from previous years, apply once it’s visible in your payslips or P60
Ask for an employer letter – This adds credibility and clarity to how your bonus is structured
Work with a broker who understands high-value bonus structures – Lender choice and presentation make a major difference
Common Mistakes to Avoid
Applying without full bonus documentation – Lenders need evidence to include your bonus. Missing payslips, P60s, or employer letters can reduce how much is counted.
Timing the application poorly – Applying before your latest bonus hits your payslip can limit your borrowing. Strategic timing can make a big difference.
Assuming all lenders treat bonuses equally – Policies vary widely. Some will use 100% of your latest bonus, others cap or exclude it. Lender choice matters.
What Our Clients Say
FAQs
Can I use my bonus for the mortgage deposit?
Yes — as long as the funds are in your account and can be evidenced. Lenders may ask where the bonus came from and when it was paid.
Will lenders include 100% of my bonus income?
Some will, particularly if you’re applying with a private bank or using a lender’s large loan team. Others may cap it at 50–60%, depending on their criteria.
I’ve just changed jobs — will my bonus still count?
In many cases, yes — particularly if your new role is comparable and you’ve stayed in the same sector. Lender policy varies, so presentation is key.
Does deferred or stock-based bonus income count?
Some lenders will include deferred bonuses or RSUs, particularly if they’re vested. You’ll need clear documentation.
Which professions benefit most from bonus-friendly lenders?
Lawyers, investment bankers, consultants, and professionals in private equity or tech — especially those earning £100k+ bonuses.
Conclusion: Make Your Bonus Count
Your bonus is a key part of your compensation — and with the right advice, it can be a powerful tool in your mortgage strategy. Whether it’s part of a growing career trajectory or a structured compensation package, make sure your lender sees the full picture.
Need help structuring your mortgage around your bonus?
We work with high-earning professionals across law and finance to maximise affordability and access the right lenders.
YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Kite Mortgages is a trading style of Kite Financial Ltd which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
APPROVED BY THE OPENWORK PARTNERSHIP ON 14/07/2025
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