Mortgage for Commission Only Jobs: A Complete Guide to Borrowing on Commission
If you earn your income through commission only, you may have wondered whether getting a mortgage will be harder than it is for someone on a basic salary.
You might even have been told that lenders do not like commission only jobs, or that you will have to settle for a smaller mortgage than you deserve.
Commission only income can look unpredictable on paper, even when you are consistently earning well.
Lenders want reassurance that you can afford your repayments not just when things go well, but also if you have a quieter month. That is why your track record, documentation and the choice of lender matter so much.
What counts as commission only income
Commission only jobs usually mean your pay is directly linked to performance, sales or completed work, rather than being supported by a guaranteed basic salary.
You might receive your income weekly or monthly, sometimes with larger peaks at certain times of the year.
Commission income can come from many roles and industries, such as:
- Sales roles with uncapped commission
- Estate agency and property related sales roles
- Recruitment roles
- Finance and insurance sales roles
From a lender’s perspective, the key question is not what industry you work in. The key question is whether your income is regular, sustainable and provable.
If your payslips show a clear pattern of income coming in and your bank statements support it, you are already doing one of the most important things lenders want to see.
Can you get a mortgage on a commission only job
With some lenders, you can. Some lenders will consider commission income, and some will consider one hundred percent of it, even if you have no basic salary.
The challenge is that not all lenders treat commission only income the same way.
Some lenders will use all of your commission, some will use a percentage such as fifty or eighty percent, and some will ignore it entirely.
A few lenders may also be cautious if your commission is highly variable or if you have only been earning commission for a short period or you don’t have a basic salary at all.
If you want to sense, check your position before you start viewing properties or committing to a purchase, contact Kerr & Watson and you can talk through your income structure and your options clearly.
Find out Your Options
How lenders assess commission only income
Lenders generally want to see evidence of consistency. They are not expecting your income to be identical every month, but they do want to see a stable pattern and a track record that suggests your earnings are likely to continue.
The way your income is assessed varies, but common approaches include:
- Averaging your last three payslips and annualising the figure
- Averaging the last six months’ payslips if income fluctuates more
- Using your latest P60 figures across one or two tax years
- Comparing year to date figures on payslips to previous years
- Using a lower percentage of your commission where it is volatile
Your income may be treated more favourably if:
- You have a two year history of commission income
- Your earnings show an upward trend
- Your commission is paid monthly without big gaps
- You have stayed in the same role or industry for a reasonable period
Your income may be treated more cautiously if:
- You recently moved into a commission only role
- Your income has large peaks and troughs without a clear pattern
- Your commission is discretionary with no visibility or structure
- Your bank statements do not match your payslips clearly
Why lender choice makes a big difference
With a mortgage for commission only jobs, two lenders can look at the same income and give you very different borrowing outcomes.
One lender might accept all of your commission, while another might cap it, or even treat you as if you earn much less.
This means your borrowing power can vary widely depending on lender policy. It is not unusual for someone to be quoted a much lower figure by their bank, only to find that a different lender can assess their income more realistically.
If you are relying on your commission income to reach a specific property budget, getting this right early is important.
Documents you will usually need
To give yourself the best chance of approval, you want to prepare your documents early. Lenders typically ask for proof that your income is real, regular and sustainable.
You will often need:
- Recent payslips, commonly three to six months
- Your latest P60, sometimes for one or two years
- Bank statements, commonly three months
- Identification and address documents
- Details of any loans, credit cards or finance agreements
Some lenders may also request a letter from your employer confirming your commission structure. This can include whether commission is contractual or discretionary, how often it is paid, and whether there is any forecast or target based expectation.
What about commission plus other income types
Some people describe themselves as commission only, but still receive other income such as allowances, overtime or bonuses. Others have multiple streams like rental income or investment income.
Many lenders will consider additional income streams, but again policies vary. The more complex your income, the more important it is to work with a broker who understands how to package it properly.
Fixed rate or variable rate when your income is variable
When your income can change month to month, certainty can be reassuring. Many borrowers prefer a fixed rate mortgage because it keeps repayments predictable for a set period.
However, the right product depends on your goals, risk comfort and future plans. A variable rate might suit you if you expect to repay early, remortgage soon, or want flexibility without early repayment charges.
The best approach is not to choose purely on rate. It is to choose based on affordability, stability and what fits your plan, so professional advice is always recommended.
Conclusion
A mortgage for commission only jobs is achievable, but lender choice and preparation make the difference.
Some lenders will accept one hundred percent of your commission, while others may cap it or ignore it, which can dramatically change what you can borrow.
If you earn commission only and you want to understand your mortgage options, contact Kerr & Watson today.
