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As part of any mortgage application, lenders will look at how much income you take home. Each lender will treat income differently which is why speaking to a mortgage adviser is key, but generally they’re looking for stable and consistent earnings.
Below is a guide to some of the types of income mortgage lenders will consider:
This is the most common type of income used for mortgage applications as for most people it's their main or only source of income. Lenders will typically ask for a few months worth of payslips to verify it.
This includes income from overtime, bonuses, commissions, and earnings from second jobs or freelance work. Lenders will also look at areas like shift allowance, large town allowance and even car allowance.
They may apply a percentage or average the income over a period to assess its reliability, especially on payments like bonuses, commission and overtime where the income can change or isn't guaranteed.
Lenders typically require two to three years of tax returns and business accounts to check the earnings.
Income from professional landlords who rent out properties is often considered as a source of income.
Regular income from state and private pensions, as well as various investments, can be included.
Most regular and ongoing benefits from government departments are considered, but this depends on the benefit type and the lender.
Financial support from an ex-partner can be factored into a household's income, although there might be age restrictions so it's best to check.
Lenders will also look at areas like foster income, guardian allowance and even bursary/stipend income.
Cash wages, unpredictable payments, or short-term unemployment benefits are less likely to be accepted.
Income from gambling winnings or fluctuating support payments may not be included.
