Bonus, commission and overtime income

  1. Home
  2. Placing business
  3. Halifax Intermediary News
  4. Bonus, commission and overtime income

The allowable proportion of bonus, commission and overtime income used in our affordability calculation is being increased from 30% to 60%.

Last year we made a temporary reduction in the proportion of these incomes used to reflect there may be an increased element of variance in these income types and to ensure we continued to lend responsibly while still supporting customers. We have continued to monitor the situation closely to ensure we make the right decisions to support our customers and are now updating our criteria.

Bonus, commission and overtime must continue to represent a regular and sustainable feature of the customer's income. These income types should be keyed as per existing guidance and usual income verification requirements apply.

The affordability changes apply to applications started from Wednesday 8 September. A Decision in Principle (DIP) keyed on Wednesday 8 September will be subject to these new rules. Applications started before Wednesday 8 September, even if at DIP stage, will not be affected and will remain on the previous rules even if a full application is submitted after Wednesday 8 September.

Our website Mortgage Affordability Calculator will be updated from Wednesday 8 September to reflect the correct percentage of these incomes being used.

Our tracker rate mortgages are linked to Bank of England bank rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England website at

For independent information on mortgages, visit the website 'Money Advice Service'.

If you do not have professional experience, you should not rely on the information contained in this communication. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise retail clients, you must ensure it conforms to the Financial Conduct Authority's advising and selling rules. This site is intended for UK residents unless otherwise stated.

Halifax is a division of Bank of Scotland plc. Registered in Scotland No.SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Copyright © , Halifax plc. All rights reserved.