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Before You ApplyEducational mortgage-readiness preparation

Income · 7 min read

Preparing an income map when your pay varies

In short

Under FCA rules (MCOB 11.6), where income is taken into account the lender must obtain evidence of it and must not accept self-certification, and the evidence must be of a type and cover a period adequate to support each element of income relied on. What is adequate varies with your employment status, the nature and length of your employment and, in particular, where income is not contractually guaranteed. So the useful preparation is an income map: identify each element separately, record how and when it is paid and what records you already hold, then ask the lender or your adviser which elements they propose to consider and what evidence and period they require.

Who this is for

  • Employees whose pay includes overtime, commission, bonus or allowances
  • People with a second job or more than one source of relevant income
  • Anyone whose pay pattern is hard to summarise in a sentence

Key points

The rule is element by element

MCOB 11.6 requires the evidence to be of a type and to cover a period adequate to support each element of income relied on. That is why elements are mapped separately rather than merged into one figure.

Adequacy depends on circumstances

MCOB 11.6 says what evidence is necessary varies with employment status, the nature and length of the employment and, in particular, where income is not contractually guaranteed. Our sources set no fixed period, proportion or document count.

Self-certification is not acceptable

Under MCOB 11.6 a lender must obtain evidence of the income it takes into account and must not accept self-certification. Records, not recollection, are what the process runs on.

More than one source of income is ordinary

MoneyHelper explains that a lender works out household income, which can include basic salary together with other income such as commission or bonuses. How each element is treated is a matter for the lender.

A known change is relevant information

Where a lender is or should be aware of likely future changes to your income or expenditure during the term, MCOB 11.6 requires it to take them into account. Telling a lender or adviser about a change already agreed is simply accurate information.

Exceptions and things that vary

  • Some elements are contractually guaranteed and some are not. MCOB 11.6 singles out income that is not contractually guaranteed as a circumstance affecting what evidence is adequate, but it does not say how such income is calculated.
  • Recently started variable pay simply means fewer records exist. Our sources do not say what follows from that.
  • Benefits, allowances and self-employed earnings sit under different records again — see the self-employed preparation guide for the self-employed part.
  • MoneyHelper is consumer orientation only. Any period or proportion it mentions is an example, not a rule.

How to work through it

  1. List each element of income separately

    Our suggestion: write one line each for basic or fixed pay, overtime, commission, bonus, allowances, second-job income and any other income you may want considered. Do not merge them into a single figure.

  2. Record how and when each element is paid

    Our suggestion: next to each element note the pay frequency, whether it is contractually guaranteed, and whether it varies with hours, sales, season or performance — in plain factual words.

  3. Note the records you already hold

    Our suggestion: for each element, note which records exist and where — payslips, bank credits, contract or scheme terms — and whether the run you hold is continuous or has gaps.

  4. Note any material change

    Our suggestion: record any change already agreed or already happened — new role, changed hours, a scheme ending — with dates, so it can be stated accurately rather than remembered.

  5. Ask which elements will be considered, and on what evidence

    Our suggestion: ask the lender or a suitably qualified FCA-authorised mortgage adviser which elements of your income they propose to take into account, and what evidence and what period they require for each. Only they can answer that.

Illustrative example (not a real case)

Imagine someone whose pay includes basic salary, overtime that rises in winter, and an annual bonus. They write three separate lines, note the pay frequency and whether each is contractually guaranteed, list the records they hold for each, and add a dated note about hours changing. They then ask which elements will be considered and what evidence is needed for each. Illustrative only — it shows a method of organising facts, and implies no lender treatment.

Illustrative only. Figures and situations in examples are made up to show a method. They are not typical, not a benchmark and not a prediction of any outcome.

What not to assume

  • Do not assume any averaging method applies to your variable pay. Our sources set none.
  • Do not assume a proportion of bonus, commission or overtime is taken into account. Nothing here supports a proportion.
  • Do not assume a number of payslips, months or years of history is required. The adequate period is set by the lender for each element.
  • Do not assume overtime, commission and bonus are treated like basic pay, or like each other.
  • Do not assume a second job is, or is not, taken into account. Ask which elements the lender proposes to consider.
  • Do not assume anything on this page predicts what any lender will decide.

Questions for a qualified adviser

We cannot answer these for you, and we do not introduce or recommend advisers. Take them to a suitably qualified FCA-authorised mortgage adviser of your own choosing.

  • Which elements of my income do you propose to take into account?
  • For each of those elements, what evidence do you need and covering what period?
  • How would you like me to present income that is not contractually guaranteed?
  • Is there anything you need to know about a change to my pay or hours?

Check my readiness

Eight broad preparation questions. No figures, no personal details, no eligibility result.

Related reading

A resource that may help you organise the next step

Optional educational preparation resources. Nothing here is mortgage advice, a lender or product recommendation, an eligibility assessment or a prediction of whether an application would be accepted.

Sources

No statistic, regulator citation or third-party claim is published until its source is verified. Unverified entries are shown as placeholders.

Written by

Before You Apply editorial

Written by the publisher's editorial function, not by a named individual and not by a mortgage adviser. Before You Apply is not FCA authorised.

Reviewed by

Independent reviewer — to be appointed

No independent reviewer has been appointed yet. No review, qualification, FCA status or endorsement is claimed for this content.

  • Last fact-checked 2026-08-23
  • Not yet independently reviewed
  • Next review due 2027-02-23

Disclosure: this guide is educational. Before You Apply receives no payment for mentioning any lender, product or firm, and none are named.

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