What Counts as Income for a Mortgage in Hove

When you start talking about mortgages, it is easy to assume lenders will just take your salary and multiply it. In reality, different types of income are treated differently. Understanding this ahead of time can help you present your case in the best way.

Whether you work in Brighton, from home in Hove or run your own business from Portslade, here is how lenders tend to view the main income sources.

Basic salary

This is the easiest part. For employed applicants on PAYE:

• Lenders usually take your annual basic salary from your contract and payslips
• You will normally need to provide 3 months of payslips and bank statements
• If you are new in a role, some lenders will work with a signed contract and first payslip

Overtime, commission and bonuses

These extras can make a real difference in sectors like hospitality, sales and healthcare. Lenders usually:

• Look at a history, often 12 to 24 months
• May take an average of what you have actually received
• Often use a percentage of that average (for example 50 to 100 percent) depending on how regular it is

If you rely on variable pay to reach the property you want in Hove, dig out older payslips early so the pattern is clear.

Self-employed income

If you are self-employed in Hove or nearby, there are a few common approaches:

• Sole traders and partnerships – lenders often use your average profit over the last two tax years
• Limited company directors – some use salary plus dividends, others may consider retained profit
• Contractors – some lenders work from your day rate if you are on a fixed contract

Having up to date accounts, tax calculations and overviews ready will make the process smoother.

Rental and other income

• Established rental income can sometimes be included, subject to proof and tax treatment
• Certain benefits and maintenance payments may count, depending on the lender
• Regular pension income is usually acceptable, especially for later life lending

Always check which elements a particular lender is happy to use.

Local note for Hove buyers

With a mix of commuters, remote workers and self-employed people across Hove, Aldrington and Shoreham-by-Sea, it is rare for an application to be just one simple salary. Pulling together everything you earn in a clear way makes it easier to match you with a lender that understands your pattern of income.

If you are unsure how a particular part of your income will be treated, you can send us a summary via the contact page and we will talk you through likely options.