Modern employed roles often have varying income types and irregular working hours. Some people still find they are declined by mortgage lenders because they simply don’t understand or are not comfortable with how their income is derived.

Some mortgage lenders will not take commission, overtime or bonuses into consideration. Others may demand as much as 2 years history of “irregular income” from P60’s, with others only averaging the last 3 months (which may miss out the months where you have earned the most!).

More people than ever before are in the position of not having just a single regular source of income; recent economic stresses have had an effect on how people earn their living, with many working freelance or jumping from contract to contract. Other people may rely on pensions, interest payments or dividends as part of their income and yet still need to apply for a mortgage.

Income is classed as complex by lenders if it is made up of several different sources, and/or can be variable income from month to month. That’s where we come in, as we can help you decide what income will count and we can then advise you as to which lenders will consider you.

Mortgage lenders may also not lend to people on zero-hour contracts, agency workers, people who have been employed for less than 3 months or starting a new job. Many mortgage lenders will also not take any state benefit incomes into consideration.

Our specialist lending knowledge will help in all of the following situations:

100% of Commission, overtime or bonus
100% of shift allowance, car allowance, London weighting etc
Zero-hour contracts
Agency workers
People on probation
New jobs (even if not started yet)
State benefit income

Our specialist mortgage advisors will assess your payslips and contract to achieve the maximum you can borrow at the best interest rate available.

If you would like to be contacted by a mortgage advisor who is experienced and knowledgeable in this specific area, please use our find a mortgage tool to answer a few short questions.

As a mortgage is secured against your home/property it may be repossessed if you do not keep up the repayments.

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Frequently Asked Questions

What kinds of income will a lender take into account?

Full-time wages
Part-time wages
Overtime payments
Sales commission
Annual (or other) bonuses
Pension
Investment income
Dividends
Interest on savings or investments
Freelance earnings
Rental income from buy to let
Royalty payments
Maintenance payments
Government benefits

What circumstances have you worked with when arranging a Variable Income Mortgage?

Someone with multiple jobs, for example someone with a full-time 9–5 job who also works in a pub on evenings and weekends; someone with two (or more) part-time jobs; someone who is self-employed, or someone with income in the form of a pension plus investment dividends.

Do I need to do anything special when applying for a Variable Income Mortgage?

When applying for a mortgage it can be important that all sources of revenue are taken into account as this gives a prospective lender a clear picture of your financial situation and could also be beneficial if you are looking for an amount that is deemed at the height of your affordability limit; that might make the difference between moving into your dream home or having to settle for second best.

Can I get help with my mortgage if I’m on benefits?

Some lenders will consider certain types of benefits. Getting the right advice here is critical, and where speaking to us early on in the process will get you the maximum help possible.

What Benefit Income is Acceptable?

Ultimately this varies from lender to lender. There are a few lenders who will consider certain types of benefit income as contributing towards an overall income total – talk to us to get the best advice, as there are many variables to take into consideration here.

Can I use child support as income for mortgage?

While most lenders don’t consider child support to be part of your income, there are actually a few out there that will take it into account. We’ll use our years of experience to determine the best route for you once we know all of your circumstances.

Does maintenance count as income for mortgage?

Yes, some lenders accept up to 100% of maintenance income. It will depend on the lender and you would generally need a history of maintenance payments to be considered, or a valid court order for them to be paid. The age of the children is also a factor, as some lenders will only lend if the children are under a certain age, to ensure the benefits are likely to continue for a reasonable period of time as they need to be certain you’ll be able to afford the mortgage for the foreseeable future.

Can you get a mortgage on disability benefits?

Disability Living Allowance (DLA) is considered income by quite a few lenders when it comes to applying for a mortgage. The usual criteria would apply and, if you meet their conditions, they can’t refuse you a mortgage because you are disabled.

Do tax credits count as income for a mortgage?

While some lenders won’t accept tax credits, there are a few out there who will accept tax credits as income. This can vary, with some lenders accepting 100% of the credit toward income, while others can cap it at 60%. Again, we’ll use our experience to guide you to the best possible mortgage deal for you.

Which mortgage lenders accept tax credits?

There are various lenders that accept tax credits as income for a mortgage. You’ll need to provide bank statements or letters from the relevant government organisation to substantiate your claim. Talk to one of our advisors to find out your best options and which lenders will suit your circumstances in regard to mortgage tax credits.
Ultimately, although it can seem that a Variable Income Mortgage would be difficult to obtain; it’s actually not that hard at all, and we guide you through the process every step of the way. Let us use our years of combined experience that our advisers have to help you by filling in our enquiry form today.

Paul, Leeds

Self-Employed Bricklayer

Right mortgage made things a lot easier
I quickly found the maximum amount I
could borrow

Read Paul's Story

Self-Employed Bricklayer

Right mortgage made things a lot easier

I quickly found the maximum amount
I could borrow

Craig & Heather

Limited Company Directors

Self-employed people need the advice
   and help of a good adviser

We wouldn’t have moved without
   Right Mortgage

We’ve already recommended to
   friends and family

Craig & Heather

Limited Company Directors

Self-employed people need the advice
   and help of a good adviser

We wouldn’t have moved
   without Right Mortgage

We’ve already recommended to
   friends and family

Greg, Huddersfield

Company Director

My profits were much higher in year 3
than in the first 2 years.
Right Mortgage were able to find a
lender based on my most recent years income.
I could borrow more.

Read Greg's Story

Greg, Huddersfield

Company Director

My profits were much higher in
year 3 than in the first 2 years.

Right Mortgage were able to find
a lender based on my most recent
years income. I could borrow more.