Using commission based pay to increase borrowing

May 2025

Background

Lucy, 28, works in sales and lives near London Fields. She has a basic salary of £45,000, but over the past year, her commission has been building steadily. In recent months, she’s been averaging over £6,000 a month.

With just over £100,000 saved, and her landlord serving notice, Lucy decided it was time to buy.

The kind of properties she liked, with enough space, a second bedroom, and close to the area and lifestyle she enjoys, were around the £650,000 to £725,000 mark. But when she went to her own bank, she was told she could borrow just over £400,000.

It felt frustrating. She had strong earnings and good savings, but her income wasn’t being recognised properly.

Main Issue - Commission higher than salary

Many lenders place restrictions on how much variable income like commission or bonuses they’ll accept. For Lucy, this meant her earnings weren’t being looked at in the right way, and her borrowing potential was capped.

The properties she had in mind felt completely out of reach.

The MUVADO method

We reviewed Lucy's income in more detail and looked at lenders who were open to a more rounded view of her affordability. We undertook the following steps to find the right solution:

Commission history

We looked at 12 to 18 months of income to understand her average and what a slower month might look like.

Lender approach

We worked with a lender that accepted 100% of her average commission over the last 3 months, and who would lend up to 5.5 times income at 90 percent loan-to-value.

Repayment structure

We used the maximum available term to keep the monthly payment affordable, with plans to overpay as income continued to rise.

Income protection

We put insurance cover in place so Lucy had financial support if anything unexpected affected her ability to work.

Cash Flow Planning

Even after covering the deposit and costs, Lucy had a buffer in place and we recommended a savings plan to build that back up over the first year.

Outcome

With a borrowing capacity that matched her actual income, Lucy was able to buy a property she genuinely wanted. It had the space she was looking for and kept her close to friends and work. The mortgage was based on repayment, with flexibility to overpay, and fixed monthly payments for stability.

Summary

When income includes commission or other variable elements, it’s important to work with someone who can assess the full picture.

By choosing the right lender and structuring things in the right way, Lucy was able to borrow more, without taking on more risk than she was comfortable with.

If your income isn’t straightforward, your mortgage doesn’t need to be either.

Book in a call

Risk warnings

Your home maybe repossessed if you do not keep up repayments on you mortgage.