Commission income can count towards your mortgage. Some lenders may include commission in affordability calculations where it is properly documented and consistently earned. The challenge is not whether commission counts, but which lender may assess your income pattern more flexibly, subject to their criteria.
Whether you work in sales, estate agency, financial services, recruitment or another commission-based role, this guide explains how lenders assess commission income, what documentation is typically required, and how different income patterns affect what is available. Speak to a mortgage adviser about your commission income or read on for full detail.
Short answer: Yes, commission can count as income for a mortgage. Some lenders may include commission in affordability calculations where it is consistently earned and properly evidenced over 2 to 3 years. Not all lenders accept commission income, and those that do may apply different inclusion rates and calculation methods.
Commission income is variable by nature, which is why lenders assess it differently to basic salary. The key factors are how long commission has been received, how consistent the amounts are, whether income is rising or declining, and what documentation supports the pattern. Lenders who are familiar with commission-based roles typically have clearer criteria for how to assess it; others may exclude it or apply a conservative proportion only.
Had your commission income dismissed by a lender? Lenders vary significantly in whether they include commission and at what rate. We can explain how lenders from across the market may assess your commission pattern based on your circumstances.
Not all applicants will have commission income accepted. In some cases, only basic salary may be used in the affordability assessment.
See How Lenders May Assess Your Commission IncomeThere is no single standard method for calculating commission income in mortgage applications. Different lenders use different approaches, and the method applied to your application can significantly affect the income figure used for affordability.
| Commission pattern | How lenders typically assess it | Documentation that helps |
|---|---|---|
| Consistent commission, 3 years history | Often averaged across all 3 years. Some lenders may accept at a high inclusion rate given demonstrated consistency | 3 years payslips, 3 P60s, employer letter confirming commission structure |
| Rising commission trend over 3 years | Some lenders may use the most recent year only or a weighted average that reflects the upward trend | 3 years payslips showing progressive increase, P60s, employer confirmation of trajectory |
| Variable or seasonal commission | Typically averaged across years. Predictable seasonal patterns may be understood where the sector is known to the lender | 3 years payslips showing seasonal pattern, employer letter explaining seasonal nature |
| Declining commission | Usually assessed conservatively. Lenders may use the lower or average figure and may require explanation of the decline | Written explanation of reasons, evidence of stabilisation if applicable |
| 1 to 2 years commission history | Options more limited. Some lenders may consider shorter history; others require 3 years minimum | Available payslips and P60s, strong employer letter, evidence of consistent pattern |
Unsure whether your commission income will be included? We can explain how lenders from across the market may assess your specific commission pattern based on your circumstances.
Find Out How Your Income May Be AssessedCommission income sits within a broader category of variable pay that also includes bonuses, overtime and performance-related earnings. Lenders with criteria for assessing variable income recognise that total earnings can be significantly higher than basic salary alone. The challenge is demonstrating that variable earnings are sustainable rather than one-off.
For applicants whose total income is substantially higher than their basic salary due to commission, the choice of lender matters considerably. A lender who includes only basic salary may produce a significantly lower borrowing capacity than one who includes averaged commission at a high inclusion rate. The income figure used in the affordability assessment is directly affected by which lender is approached and how they treat each income component.
Commission income is assessed under the same broad principles as other forms of variable pay. If you also receive bonuses or regular overtime, these may be assessed alongside commission by some lenders. See our guides on bonus income mortgages and overtime income mortgages for detail on how those income types are treated.
Sector specificHow commission is assessed can also depend on the sector. Lenders with criteria for specific industries have clearer assessment approaches for typical commission patterns and whether seasonal or project-based variation is normal.
Estate agents typically receive a significant proportion of total earnings through sales commission, which varies with property market activity. Seasonal variation in the property market is generally well understood. Lenders with criteria for estate agency income may accept averaged commission over a period that reflects a full market cycle rather than penalising lower quarters in isolation.
Sales professionals across sectors including financial services, technology, recruitment and business services often have structured commission arrangements tied to targets. Where commission is linked to individual performance against defined targets and paid regularly, consistent documentation through payslips and P60s provides a clear evidence base. Employer letters confirming the commission structure and its sustainability support the application.
Recruitment consultants often have high commission-to-salary ratios, with total earnings heavily dependent on billings. The variable nature of recruitment income means that lenders will look closely at the consistency of commission receipt over time. A consultant with 3 years of consistent commission history, even if amounts vary, is typically in a stronger position than one with large amounts in a single year only.
Commission earner in a specific sector? We can explain how lenders typically approach commission income in your industry and what documentation may be most useful for your application.
Discuss Your Commission IncomeAn employer letter is particularly valuable for commission income applications. It can clarify whether commission is contractual or discretionary, explain any variation in commission amounts, confirm the sustainability of the arrangement, and provide context for lenders who are less familiar with specific commission structures. This does not guarantee acceptance but may help lenders understand the income structure more clearly.
We can explain how lenders may assess your commission pattern based on your income structure and history. Any information provided before a full assessment is for guidance only and is not a regulated recommendation.
Speak to a Commission Income Mortgage AdviserNo fee for the initial consultation. A non-refundable £299 fee is payable on mortgage offer, whether or not the mortgage completes.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A sales professional aged 35 with a base salary of £30,000 and 3 years of consistent commission averaging £15,000 annually, giving a documented total earnings figure of approximately £45,000. Three years of payslips, P60s and an employer letter confirm the commission arrangement as ongoing and performance-based.
Comprehensive documentation covering 3 full years of commission receipt, consistent amounts across the period, an employment contract confirming the commission structure, and an employer letter confirming the sustainability of the arrangement. A lender was willing to include the averaged commission figure alongside basic salary in the affordability assessment.
In this illustrative scenario, commission income was included in the affordability assessment by one lender. Outcomes vary significantly and other applications with similar profiles may be assessed differently or declined. Any recommendation would be provided only after a full regulated advice process.
An estate agent aged 31 with a base salary of £22,000 and 3 years of seasonal commission averaging £12,000 annually, with significant month-to-month variation reflecting property market cycles. Total average earnings approximately £34,000. Seasonal lows in some months balanced by higher-activity quarters.
Three years of payslips demonstrating a consistent annual commission total despite monthly variation, P60s confirming earnings across the period, and an employer letter explaining the seasonal nature of estate agency commission and confirming the pattern as normal for the role and sector. A lender familiar with estate agency income assessed the application on the annualised average rather than focusing on individual low months.
In this illustrative scenario, a lender assessed commission on an annual basis and included the averaged figure in affordability. The seasonal variation was understood rather than penalised. Actual rates, terms and outcomes vary significantly. Any recommendation would be provided only after a full regulated advice process.
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Yes, commission can count as income for a mortgage. Some lenders may include commission in affordability calculations where it is consistently earned and properly evidenced over 2 to 3 years. Not all lenders accept commission income, and inclusion rates and calculation methods vary. Acceptance depends on individual circumstances and lender criteria.
Most lenders prefer 2 to 3 years of commission history to assess consistency and sustainability. Some lenders may consider applications with a shorter history in certain circumstances, particularly where a strong employer letter supports the commission arrangement. Requirements vary significantly between lenders.
Monthly variation is common with commission income and many lenders have criteria for this. Rather than assessing individual months, most lenders average commission across the available years to establish a sustainable annual figure. Predictable seasonal patterns may be recognised by lenders familiar with the sector. Unexplained volatility or inconsistent receipt may be assessed more conservatively.
Inclusion rates vary by lender. Some include 100% of averaged commission where it is consistently evidenced. Others may include a proportion only, commonly 50% to 75%, depending on their assessment of sustainability and consistency. Some lenders exclude commission entirely. The inclusion rate applied to your specific situation depends on the lender chosen and their assessment of your commission history.
Declining commission trends are assessed more conservatively by lenders because they raise questions about sustainability. A lender may use the lower or averaged figure, may apply a reduced inclusion rate, or may require explanation of the decline and evidence of stabilisation. If commission has been declining, the income figure used may be lower than recent years would suggest.
An employer letter is not always mandatory but is strongly recommended for commission income applications. It can confirm the commission structure, clarify whether commission is contractual or discretionary, explain any variation in amounts, and confirm that the arrangement is ongoing. A well-drafted employer letter can significantly support how commission income is assessed, particularly where lenders have questions about the nature or sustainability of the payments.
No. Lenders require evidence of actual commission received, documented through payslips and P60s. Anticipated or expected future commission cannot be included in affordability assessments. Only commission that has been earned and received, with documentary evidence, can be used.
The additional borrowing capacity depends on the commission amount, how it is averaged, the inclusion rate applied, and individual lender criteria. To illustrate the principle only: if a lender includes £15,000 of averaged annual commission at 100% alongside a £30,000 basic salary, the assessable income increases from £30,000 to £45,000. Lenders do not use simple income multiples alone and actual borrowing may be significantly lower than any illustrative range suggests. These are broad illustrations only, not a quotation or offer of lending. Actual outcomes depend on individual circumstances, lender criteria, credit profile, expenditure and current interest rates.
Speaking to a broker can be particularly useful where commission forms a significant part of your income, because lenders vary significantly in whether they include commission and at what rate. The difference between a lender who excludes commission and one who includes 100% of a 3-year average can be material to borrowing capacity. There is no fee for an initial conversation and no recommendation is made until a full regulated process is completed.
This information is intended for UK employees and self-employed individuals who receive commission income as part of their total earnings and are considering a residential mortgage application.
This page contains general information only and does not constitute regulated mortgage advice. A mortgage based on commission income is less likely to be suitable where commission history is less than 2 years, where commission is highly variable or declining, where commission cannot be adequately evidenced through payslips and P60s, or where adverse credit or a limited deposit applies. Relying on commission income to support a mortgage that basic salary alone would not support increases the financial risk if commission reduces in the future. If your commission reduces, your mortgage may become less affordable. This is a foreseeable risk that should be considered carefully before proceeding.
Any mortgage recommendation will be provided only after a full regulated advice process, assessing affordability, suitability and your overall circumstances. We will explain if a mortgage is not suitable. If you are unsure whether your commission income will be included, we can explain the options clearly before you proceed. If your income is uncertain or you are concerned about affordability, we will discuss this with you and explain the risks clearly before any recommendation is made.
Many commission earners have been told their variable pay cannot be included, or have been assessed on basic salary alone by a lender without criteria for their income structure. We consider a comprehensive range of mortgages from across the whole market and are not restricted to a panel or network.
Woodhall Mortgages is authorised and regulated by the Financial Conduct Authority. Firm reference number 762513. You can verify this on the Financial Services Register.
We consider a comprehensive range of mortgages from across the whole market and are not restricted to a panel or network. However, not all lenders or products are included. We will confirm the scope of our service before proceeding.
Mortgage risk: Your home may be repossessed if you do not keep up repayments on your mortgage.
Fees: There is no fee for the initial consultation. A non-refundable £299 fee is payable on mortgage offer. This fee is charged for arranging the mortgage and is payable whether or not the mortgage completes. We may also receive commission from lenders; this does not affect the advice you receive.
This page contains general information only and does not constitute regulated mortgage advice. Woodhall Mortgages, Halifax, West Yorkshire. Last reviewed: April 2026.
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Woodhall Mortgages Ltd is authorised and regulated by the Financial Conduct Authority under reference number 762513.
