Bonus income can be used for mortgage affordability, but most lenders treat it more cautiously than basic salary. The reason is variability: bonuses can change year to year and are sometimes discretionary. Lenders therefore look for a strong track record and a clear pattern that suggests the bonus is likely to continue.
In many cases, lenders will:
- Ask for two to three years of evidence (often P60s and payslips).
- Use an average of the bonus over the period, or take a percentage of it.
- Apply additional checks if the bonus is a large proportion of total income.
If you have recently changed employer, are in probation, or your bonus structure has changed significantly, the lender’s approach may become stricter. Some lenders will not fully count a bonus until it has been received and evidenced, even if it is contractually expected.
For high net worth cases, it often comes down to matching your compensation structure to lenders who are comfortable with it. A well-presented application that explains how the bonus is earned, how consistent it has been, and how it fits within your wider affordability picture can reduce underwriting delays and improve the chances of a smooth approval.
Hearthstone Mortgages (trading name of Hearthstone Advisory Limited)
Tel: 01753 463391 | Email: enquiries@hearthstonemortgages.co.uk
Registered office: Europa House, Marsham Way, Gerrards Cross, Buckinghamshire, SL9 8BQ
Company No: 10563329 | FCA FRN: 945282
Warnings:
THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME OR PROPERTY.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
We are a credit broker, not a lender. We may receive commissions that will vary depending on the lender, product or other permissible factors. The nature of any commission model will be confirmed to you before you proceed.