Question 1

Do lenders accept benefits as income?

Accepted Answer

Many lenders accept certain benefits including: Child Tax Credits, Child Benefit, DLA/PIP, Carer's Allowance, and some pension credits. Working Tax Credits and Universal Credit may be partially accepted. Each lender has specific acceptance criteria.

Question 2

How is overtime assessed for mortgages?

Accepted Answer

Most lenders want 12-24 months' evidence of regular overtime and typically use 50-100% of the average. Guaranteed overtime may be treated differently from variable overtime. Some lenders need employer confirmation that overtime will continue.

Question 3

Can I use commission for mortgage affordability?

Accepted Answer

Yes, most lenders use 50-100% of average commission over 1-2 years. You'll need payslips showing consistent commission income. Some lenders prefer guaranteed or contractual commission over discretionary.

Question 4

Is bonus income included in mortgage applications?

Accepted Answer

Typically 50-100% of average bonus over 2-3 years. Some lenders require bonus history from the same employer. Annual bonuses are easier to evidence than irregular bonuses. Retention and sign-on bonuses may be treated differently.

Question 5

Can I use zero-hours contract income?

Accepted Answer

Yes, many specialist lenders accept zero-hours contracts with 12+ months' history. They'll typically use average income over 12 months. The key is demonstrating consistent work patterns despite the contract type.

Income Type Mortgage Criteria

Related Resources

Frequently Asked Questions

Need Help With Your Situation?

What Our Clients Say