Which banks and building societies are the best for bonus income mortgages?
Banks and building societies are keen to issue bonus income mortgages. This page was updated 27/06/2025.
Most banks and building societies accept bonus income when determining how much applicants can borrow for mortgage affordability purposes. The percentage of bonus income they accept varies considerably from lender to lender.
Barclays for Intermediaries will use 100% of the two-year average for income multiple purposes. It also does not cap the bonus amount in line with a salary so borrowers can receive higher bonuses than their basic income. This means the lender can issue mortgages of up to 5.5 times salary for single applicants earning over £75,000 or joint applicants earning over £100,000.
How much of a bonus do the lenders typically take for mortgage affordability purposes?
It is more common for lenders to use 50% of bonus income. However, some lenders are more flexible, including specialist lenders like Hodge, as they will accept up to 100% of bonuses as an acceptable source of income for an affordability assessment.
How much of a bonus does Santander take for mortgage affordability purposes?
Santander can take 100% of bonus or commission where the amounts are regular and consistent, or 70% of bonus, commission or overtime paid monthly where the amounts are regular but inconsistent. Accord for Intermediaries is part of the Yorkshire Building Society, and it will accept 60% of sustainable overtime and bonus subject to the cumulative figure not exceeding the basic income.
Kensington for Intermediaries is one of the most generous lenders, which can take up to 100% of regular bonuses. At the same time, some private banks can also be a good option if you want a £1 million+ mortgage.
Aaron Strutt, product director at Trinity Financial, says: “The lenders have eased their mortgage afforabiluty rules recently so they are offering more generous loan sizes. Even so, it can be hard to secure a sufficiently large mortgage, especially if you receive monthly or annual bonuses and commissions.
"Our brokers have access to a range of lenders providing five and 5.5 times salary mortgages to help borrowers secure more generous loans. Many lenders offer income stretches and do not charge more expensive rates."
What evidence of bonus income would be required by lenders like Halifax?
Halifax is the UK's largest mortgage lender, and its bonus income mortgage criteria states:
Bonus income is acceptable and must represent a regular and sustainable feature of the applicant’s income. Deferred bonuses are usually conditional and may not be guaranteed. Bonuses must not be included on a mortgage application unless they have already been paid out. If the income is received weekly or monthly on the application, it must be stated as earned in the last year.
If bonuses are paid Yearly/Half Yearly/Quarterly – the lower of (a) the total income earned in the last 12 months or (b) the average of the income earned in each of the last 2 years must be stated. All the relevant payslip(s) for the latest 2 years must also be provided.
The payslip must show:
- Applicant & employer name
- Pay date
- Basic income
- Gross & net pay and any additional payments being used for affordability
- On occasions where the customer is unable to provide payslips that fit the listed criteria, Halifax may be able to request an employer’s reference to verify the income.
Lenders offering the most generous bonus income mortgages include:
| Lender bonus rules | Bonus/Commission Considered |
|---|---|
| Metro Bank for Intermediaries | 60% taken into account for affordability. This can be either 60% of the total of the last P60 minus the basic or the year-to-date figure in the current tax year. |
| Leeds for Intermediaries | Variable income sources such as bonus can be considered. If regular 50% can be used and if guaranteed and evidenced 100% variable income ban be considered. |
| Barclays (via broker) | Cappeed at 100% of basic salary plus allowances. |
| Hodge, Kensington for Intermediaries | Can consider up to 100% of bonuses for applicants with a strong credit profile. |
| NatWest for Intermediaries | Up to 100 % monthly/quarterly bonuses; 50 % of annual. |
| Santander, HSBC, Halifax, Accord, TSB, Nationwide for Intermediaries | Typically 50–75 % with proof of income. |
| Private banks | 100% often taken, but tailored depending on the applicant. |
Call Trinity Financial on 020 7016 0790 to secure a bonus income mortgage book a consultation
The information contained within was correct at the time of publication but is subject to change.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Trinity Financial has access to the decision-in-principle systems that the banks and building societies provide to confirm whether borrowers qualify for a mortgage or not.
Once our brokers have spoken to borrowers to determine their financial situations and they have provided the required income confirmation, we can submit an agreement in principle very quickly. Often on the same day.
The lenders provide three options for a decision in principle, including accept, decline or refer. If an application is referred or declined, our advisers will work to understand what has happened, especially if the alternative options are limited.
Once a decision is accepted, we can submit a complete application and instruct the property valuation.
Yes, annual bonuses do count towards income for a mortgage. Most lenders will accept 50 or 60 per cent of annual bonuses for mortgage affordability purposes. Some lenders can accept a higher percentage, but this may be through more specialist lenders.
Trinity Financial has access to at least 65 lenders offering bonus income mortgages, and they have varying acceptance criteria. According to an analysis by Which? out of 60 lenders they know of:
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38 lenders accept 100% of guaranteed annual bonuses.
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14 lenders accept up to 50% of guaranteed bonuses.
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For performance-related bonuses, 17 lenders accept 100%, while 32 lenders cap it at 50% .
Whether you take a fixed or tracker rate really depends on your current financial situation, relationship status, and attitude to risk. Most borrowers take two or five year fixes.
Many borrowers coming up to remortgage or get on the property ladder will be wondering if they should take a two-year, five-year, or a tracker, and the answer depends on their attitude to risk. Many borrowers want payment security, so they opt for five-year fixes. Those taking two-year deals often suspect rates will come down and there may be more competitively priced rates over the near to medium term.
It is not always advisable to take a fixed rate if you are planning to sell your home soon, or if you are getting divorced (and your partner and kids are not staying in the property) or your financial situation is changing because you are leaving your job or moving away. If you want to keep your home and your financial situation changes, lenders offer permission to let.
Tracker mortgages often do not have any early repayment charges, allowing borrowers to sell their property and repay the mortgage without paying high early repayment fees.
This is general information. To speak to an expert and discuss your situation, call one of Trinity Financial's brokers on 020 7016 0790 or book a consultation.
• You can contact one of our consultants by calling 020 7016 0790, or complete our basic enquiry form or mortgage questionnaire for a more detailed initial response.
• You tell us what you are looking for and the property type you want to buy. We assess your mortgage and financial protection needs based on your monthly budget.
• We collect the information and documentation that the lenders and providers need.
• Based on the information supplied, we provide you with illustrations of the most suitable products for your circumstances.
• We then apply on your behalf to secure a mortgage offer as quickly as possible. This is once you have confirmed you are happy to proceed.
• We manage the application through to completion and liaise with all involved parties, including valuers, estate agents, and solicitors.
• Post-completion, we are available for any questions. When you reach the end of your initial product, we can also discuss any further mortgage, will or financial protection product requirements.
As part of our ongoing service commitment, we will contact you at least five months prior to your fixed or tracker rate expiring to ensure you avoid reverting to an expensive standard variable rate.
The minimum deposit required to secure a mortgage is 5%. Rates are lower with a 10% deposit.
In order to access the cheapest rates in the mortgage market, borrowers will need a 35% or 40% deposit, although they are not much more expensive if you have a 20% or 25% deposit.
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