Would your earnings count as income for a mortgage?

An Olympic gold medallist claims that he has been rejected by 40 different lenders, as his earnings aren’t accepted as income for a mortgage.

Although rower Will Satch has a tax-free income of £28,000 per annum, lenders have to decide whether income is sustainable to be reliable for the length of the mortgage term. This has prompted the question “what will be accepted as income?”

The type of income and the proof required varies for each lender. For instance, the Nationwide accepts basic pay, commission, overtime, bonuses and other types of income. Overtime must be proved by providing the last three months’ pay slips, while basic pay can be proved with just the latest pay slip. The last four statements need to be given as evidence of twice yearly bonuses. If a borrower is self-employed, a lender will often require more evidence of income. For a mortgage of up to £500,000, the Nationwide requires an accountant’s certificate for the last two years.

Income from a second employment will generally be accepted by a lender, while a third job won’t be. However, the income from a second job will be subject to consideration by the lender. The Halifax will consider the distance between two jobs, the hours worked, the number of days worked each week and how long the borrower has been employed in both positions.

Mortgage advisers know which types of income are likely to be accepted, and by which lender, as they are CeMAP qualified and have gained many years of experience in the industry. Professional advice will ensure you find the most suitable mortgage for your circumstances.



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