Complex income: bonus, commission, overtime
Complex income means earnings beyond a basic salary: bonus, commission, overtime, shift allowances or a second income. UK lenders treat these very differently, using anywhere from 0% to 100% of a given element. The figure a lender uses, not the figure on your payslip, sets your maximum loan. The same applicant can be offered far more by a lender that counts a higher share of their variable pay.
The percentage problem
A payslip showing a large bonus does not mean a lender uses all of it. One lender might count 100% of a regular, evidenced bonus; another 50%; another none. Overtime, commission and allowances are treated the same patchy way. So affordability is not really about what you earn: it is about which lender's rules use the most of what you earn. That is the single biggest lever on a complex-income case.
How much typically counts
| Income type | How lenders often treat it |
|---|---|
| Regular bonus | From 0% up to 100%, frequently averaged over one to two years |
| Commission | Often 50% to 100% if regular and evidenced |
| Overtime / shift allowance | Commonly 50% to 100%, depending on regularity |
| Second income | Counted in full by some lenders, partly or not at all by others |
Indicative ranges only. Every lender sets its own percentages and evidence rules.
What to have ready
- Payslips covering enough months to show your variable income is regular.
- Your latest P60, and ideally the previous one, to evidence annual totals.
- For commission, a clear pattern over time rather than a single spike.
- Details of any second income, with its own evidence.
Common questions
How much of my bonus or commission counts?
It varies widely. Some lenders use 100% of a regular bonus or commission, others use 50%, and some ignore it entirely. The same applies to overtime. Because the percentage differs so much, two lenders can offer very different maximum loans on identical payslips.
How do lenders evidence variable income?
Usually from payslips and your P60, often averaging the last one or two years, or sometimes taking the lower of the latest year and the average. A consistent, growing bonus is treated more generously than a one-off.
What about a second job or side income?
Many lenders will consider a second employed income or self-employed side income, but only some combine it fully with your main income. This is a common reason a perfectly affordable application is declined: the lender simply does not count part of what you earn.
I earn plenty but keep being offered too little. Why?
Almost always because your lender discounts your variable income. A lender that uses a higher percentage of your bonus, commission or overtime can lift your maximum loan substantially without you earning a penny more.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 29 June 2026