How variable income is assessed
A lender may average recent bonus, commission or overtime, use the latest year, or accept only a percentage. Guaranteed allowances may receive different treatment from discretionary payments.
What history is usually helpful?
A consistent pattern makes it easier to demonstrate sustainability. Three, six, twelve or twenty-four months may be reviewed depending on the income type and lender.
- Monthly commission
- Quarterly or annual bonus
- Regular overtime
- Shift and location allowances
- Second jobs and multiple employments
What if the income has increased?
An increase can sometimes be supported by year-to-date figures, a new pay structure or employer confirmation. Some lenders remain tied to historic averages, so matching the lender to the evidence is important.
Avoiding an understated application
Entering only basic salary into a generic calculator may produce an unnecessarily low figure. Holly can identify which parts of the income are potentially usable and which documents will be needed.
Frequently asked questions
Can 100% of overtime be used?+
Some lenders may use all regular overtime, while others use a proportion or an average. Sustainability and history matter.
Can an annual bonus be included?+
Often yes, subject to evidence and the lender’s treatment of discretionary income.
What about a second job?+
Some lenders accept second-job income where it is established and considered sustainable alongside the main employment.