What Counts as Income for Mortgage Lenders?
DIRECTOR AND MORTGAGE ADVISER
Specialist broker for high-earning professionals and complex income cases.
If your income is made up of more than just a basic salary, you might be wondering what mortgage lenders will actually count when assessing how much you can borrow.
Whether you’re a contractor, receive bonuses, RSUs, or income from investments or rental properties, this guide explains how different types of income are treated — and how to present your finances for the best result.
Why Lenders Care About Income Type, Not Just Amount
Most lenders want to understand the structure and reliability of your income. It’s not just the total annual figure that matters — they want to know:
Is it regular and predictable?
Can it be verified?
Is it likely to continue?
That’s why some income types are counted in full, while others are capped, discounted, or ignored altogether.
Income Types That Typically Count — and How They’re Treated
Basic Salary - Counted 100% by all lenders
Bonus (Annual or Quarterly) - Usually 50–100% depending on consistency and track record
Commission - 50–100%, based on a 3, 6, or 12-month average — depends on role and industry
Overtime / Shift Pay - 50–100%, based on a 3, 6, or 12-month average — depends on consistency & role
Contractor Day Rate - Used to calculate annual income (e.g. £500/day × 46 weeks)
Dividends (Ltd Co) - Counted with salary if supported by accounts/tax returns
Retained Profit (Ltd Co) - Some lenders include, others don’t — often specialist lenders
RSUs / Stock Options - Vested and regular RSUs may be counted — documents essential
Rental Income - Net rental income sometimes included if fully declared
Carried Interest / Investment Income - Often excluded or heavily discounted by mainstream lenders
How We’ve Helped Clients Like You
These clients faced similar challenges - here’s how we helped them secure the right deal.
What Lenders Want to See
To include more complex income, lenders typically require:
2–3 years of history, especially for bonuses, commissions, and self-employed income
Payslips and P60s showing patterns of variable income
Company accounts or SA302s (for self-employed or Ltd Co directors)
RSU schedules or bonus letters (if your package includes equity or deferred comp)
Employment contracts or day rate agreements (for contractors
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Why Documentation and Presentation Matter
You might be earning a high total income — but if it’s not documented clearly or explained correctly, lenders might overlook it.
That’s where a broker adds real value: they can help you package your income in a way lenders understand and trust, using the right mix of documents and the right lender for your profile
What Our Clients Say
FAQs
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Sometimes — if you have a 2+ year history and it’s a consistent part of your compensation. Others might cap it at 50% or average it over several years.
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If they’re vested and part of a regular reward structure, yes. You’ll usually need to provide a vesting schedule or letter from your employer.
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Many lenders use your day rate multiplied by 46–48 working weeks to calculate annual income, provided you have a contract in place and a good history.
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Yes — most lenders will use a combination of salary and dividends, as long as you’ve got at least one to two years of accounts or tax returns.
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This depends on the lender and currency. Some accept foreign income if it’s stable and you pay UK tax, but treatment varies widely.
Conclusion: It’s Not Just What You Earn — It’s How You Earn It
Understanding what lenders count as income is crucial — especially if your pay structure is more complex than a simple salary.
Want clarity on how your income will be assessed?
We help high earners, contractors, and professionals with non-standard income get the mortgages they deserve.
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