Not everyone earns a straightforward salary. If your income includes bonuses, commission, dividends, retained profits, stock options, RSUs, carried interest, LLP drawings, or income from multiple sources, you may find that some lenders’ affordability assessments do not capture your full income picture. In London, where City, professional, and international roles often involve income structures that are far from a standard PAYE salary, this is a common situation.
This guide explains what counts as complex income, how lenders treat different income types, and why lender selection matters — particularly at London price points, where the way a lender assesses your income can materially affect the borrowing figure. For an overview of our London mortgage services, visit our London team.
If your income is complex specifically because you are self-employed or a company director, our self-employed mortgages guide covers that in detail. This guide focuses on the wider range of complex income types, including those that affect employed people as well.
What Counts as Complex Income?
Complex income is any income that does not fit a simple PAYE salary structure. Common types include:
Bonuses and commission. Many lenders will include some or all of your bonus or commission income, but how they calculate it varies. Some use an average of the last two or three years. Others use the most recent year. Some include only a proportion. For City and financial-services professionals, where bonuses can form a large part of total compensation, this variation can significantly affect the borrowing figure.
Stock options and RSUs. Restricted Stock Units and share options are common in London’s financial services, technology, and professional sectors. Some lenders may consider vested RSUs or exercised options where they are evidenced clearly and meet criteria, but many do not. Treatment varies by lender and by how the income appears on your payslip or tax return.
Carried interest and partnership income. Private equity, venture capital, and fund professionals may receive carried interest, and partners in professional firms may receive income through LLP drawings rather than a conventional salary. These income structures are assessed differently by different lenders, and some are better equipped to understand them than others.
Dividends and retained profits. If you are a company director, your income may be structured as a combination of salary, dividends, and retained profits. How lenders treat this varies significantly — see our self-employed mortgages guide for more detail.
Foreign currency and international income. London has a large international workforce, and many buyers receive part or all of their income in a foreign currency or from overseas employers. Some lenders will consider this income but may apply a discount to account for exchange rate risk. Lender approach varies by currency, income type, and how you are paid. For buyers new to the UK, see also our international buyer guide.
Multiple income sources. If you have income from employment plus rental income, freelance work, investments, or a second role, not all lenders will aggregate these in the same way. Some require a minimum period of secondary income history before they will include it.
Investment and secondary income. Income from property rentals, investments, or non-executive directorships is often assessed carefully, with lenders sometimes counting only a proportion of it depending on the provider and how consistent and evidenced it is.
Overtime and shift allowances. Regular overtime or shift payments may be included by some lenders, depending on how consistent they are and how they appear on your payslips.
Why Complex Income Matters More in London
In a lower-priced market, the difference between a lender that includes your full bonus and one that does not may not prevent you from buying. In London, where property prices are among the highest in the UK, differences between lenders in how they assess income can materially affect the borrowing figure available, and therefore the price you can reach.
London’s employment base includes a high proportion of roles with less straightforward income structures. Financial services professionals often receive a significant share of total compensation as bonus, commission, or equity. Private equity and fund professionals may receive carried interest. Partners in law and accountancy firms receive LLP drawings. International professionals may be paid in a foreign currency. In each of these cases, the income may be entirely legitimate and well evidenced, but how a lender assesses it can change the borrowing figure available.
How Lenders Assess Complex Income
Different lenders apply different rules to the same income type. There is no single standard. Some key variations include:
Bonus and commission. Some lenders average the last two or three years. Others use the lower of the last two years. Some include only a proportion of bonus income. A lender using a multi-year average may produce a very different borrowing figure from one using only the most recent year — which matters most where bonuses are a large part of total pay.
Dividends and retained profits. Many lenders assess company directors using salary and dividends only. Some lenders will also consider retained profits, depending on structure and evidence. This is one area where lender selection can materially affect the affordability outcome.
RSUs and equity compensation. Treatment varies widely. Some lenders will include vested RSUs shown on payslips. Others will not consider equity-based compensation at all. If RSUs or other equity form a significant part of your total compensation, this is an area where lender selection matters most.
Carried interest and LLP income. These less common structures are not handled the same way by every lender. Some are comfortable assessing them with the right evidence; others are not. The right lender depends on how the income is structured and documented.
Foreign currency. Lenders that accept foreign currency income may apply a discount to account for exchange rate risk. The approach varies by lender, currency, and how you are paid.
Why Lender Selection Matters
For applicants with complex income, lender selection can have a significant impact on how affordability is assessed. Two lenders assessing the same applicant with the same income can produce materially different borrowing figures, depending on how they treat bonuses, dividends, retained profits, equity compensation, or foreign currency.
Different lenders place different weight on different income components, so a broker with experience in complex income cases can identify lenders whose approach may be better aligned with your specific income structure before you apply. Some specialist lenders are available through intermediaries, and some private bank routes may require a relationship-led or introduced approach. For higher-value borrowing, lender choice and structuring become even more important — for context on how borrowing is assessed at London price points, see how much I can borrow for a mortgage in London.
What to Prepare Before You Apply
Payslips showing all income components. Ensure your payslips clearly show basic salary, bonus, commission, overtime, and any equity-based payments separately.
P60s or tax returns for the last two to three years. These provide the overall picture of your income over time, including any year-on-year changes.
Evidence of RSUs or stock options. If equity compensation is a significant part of your income, bring vesting schedules, exercise confirmations, or employer statements.
Evidence of carried interest or LLP income. Partnership agreements, distribution statements, or accountant confirmation can help a lender understand income from these structures.
Company accounts if you are a director. Certified accounts showing salary, dividends, and retained profits for the last two to three years.
Evidence of secondary or foreign income. Bank statements, contracts, or tax returns showing freelance, consultancy, investment, rental, or overseas income, including the currency it is paid in.
Why We Wrote This Guide
Fitch & Fitch is an independent, whole-of-market mortgage broker with offices in Canary Wharf, Cambridge, and Colchester. We are an appointed representative of JLM Mortgage Network, authorised and regulated by the Financial Conduct Authority (FCA Registration Numbers 955014 and 300629). You can verify this on the FCA Register at register.fca.org.uk.
Fitch & Fitch has received recognition from independent industry bodies including the Mortgage Strategy Awards, Mortgage Introducer Awards, and Legal & General Mortgage Club Awards. These awards are judged independently and can be verified on the respective awards websites.
We wrote this guide because we believe an informed borrower makes better decisions. For further information about our London mortgage services, visit our London hub page.
Frequently Asked Questions
Will lenders include my bonus when calculating how much I can borrow?
Many lenders will include some or all of your bonus income, but how they calculate it varies. Some average over two or three years, others use the most recent year, and some include only a proportion. For London professionals whose bonus is a large part of total pay, this variation can make a significant difference to the borrowing figure. A broker can identify lenders whose criteria may be better aligned with your bonus structure.
Can I use RSUs or stock options to increase my borrowing?
Some lenders will consider vested RSUs or exercised options, but many do not. Treatment depends on how the income appears on your payslip or tax return and the lender’s specific criteria. This is an area where broker guidance can be particularly useful, especially where equity compensation forms a meaningful part of your total package.
How do lenders treat carried interest or LLP drawings?
These income structures are assessed differently by different lenders. Some are comfortable considering carried interest or partnership drawings with appropriate evidence, such as partnership agreements or distribution statements; others are not set up to assess them. Because these are less common structures, lender selection and clear documentation matter, and a broker familiar with them can help identify suitable lenders.
Can I get a mortgage if I am paid in a foreign currency?
Often, yes. Some lenders will consider foreign currency income, though they may apply a discount to account for exchange rate risk, and the approach varies by lender, currency, and how you are paid. London’s large international workforce means this is a relatively common situation, and a broker can identify which lenders are most comfortable with foreign currency income.
Who lends at 5 times salary?
Some lenders may consider income multiples above standard levels for certain applicants, but this is not guaranteed and is always subject to affordability, credit profile, deposit, property type, and lender criteria. It is better to think in terms of a full affordability assessment than a single multiple. A broker can identify which lenders may consider higher multiples for your circumstances.
What is the 28/36 rule and does it apply in the UK?
The 28/36 rule is a US debt-to-income guideline and is not a standard part of UK mortgage lending. UK lenders use their own affordability assessments rather than this rule. If you have seen it referenced online, it is likely from US sources and does not apply to UK mortgage applications.
What should I avoid when applying with complex income?
The important point is to be accurate and complete. Do not overstate income, omit commitments, or present inconsistent information across payslips, tax returns, bank statements, and application forms. For complex income applicants, the most common issue is applying to a lender whose criteria do not suit your income structure — something a broker can help you avoid before you make a formal application.
What if my income has recently increased?
If your income has risen through a promotion, a new contract, or an increased bonus, some lenders will use your most recent income figure rather than an average. Others require a longer track record at the higher level. A broker can help identify lenders whose criteria may be better aligned with your current income position.
Next Steps
If your income does not fit a standard mould, a useful first step can be understanding how different lenders are likely to treat the different components of your income, and which lenders’ criteria may be better aligned with your structure, before you make a formal application.
For further information about our London mortgage services, visit our London hub page.
Related Guides
Self-Employed Mortgages in London
How Much Can I Borrow for a Mortgage in London?
International Buyer Mortgages in London
Portfolio Landlord Mortgages in London
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