Mortgage for Bankers

What are the common misconceptions bankers have when applying for a mortgage?

Bankers often have a significantly variable level of income. The misconceptions are generally around maximum affordability and borrowing levels, which can be under or over what can actually be achieved in a mortgage.

Bankers’ incomes can vary from year to year and month to month, and might include multiple bonuses or monthly, quarterly and annual commission. Clients may also have vested shares or Restricted Stock Units (RSUs), and so accessing suitable mortgages is very difficult without an in-depth understanding of market criteria.

As we’ve discussed in other podcasts, each lender has a different and specific approach. The key aspect is understanding which banks, building societies or even private banks can accept each form of income in the most effective way.

What employment history does a banker need to apply for a mortgage?

Basic income can be used as soon as you receive a permanent contract, even with a start date in the future, although you’ll need to provide the first month’s payslip.

With commission, we need three to six months’ evidence, assuming this is received monthly. With bonuses, depending on whether they are received monthly, quarterly, biannually or annually, we need up to two years’ records – and it usually needs to be with the same employer.

For vested shares or RSUs, we look back over the previous two years. It’s always a case by case situation, based on how much income is needed to fufill the borrowing requirement.

The lower the borrowing that’s needed, the easier the process is. Employment history can be less extensive and less documentation would be required. That’s the nature of how banks look at those areas of income, how they’re paid and the history.

How does a banker’s income affect the ability to secure a mortgage?

Bankers’ incomes tend to be very varied. If bonuses and commission levels are lower in the months leading up to the required borrowing, it can reduce the borrowing potential.

Bonuses in RSUs are assessed over the years prior, so if the banker changes employment, the clock restarts on using these. Bonuses and RSUs from previous employment are no longer relevant.

Some lenders have additional criteria provisions around income, to generate higher lending outcomes for bankers. There are some lending options specifically for this type of clientele.

If you are a high net worth individual, as we’ve covered in another podcast, we may also have more options in utilising your overall financial position as a banker.

How can fluctuation in the value of shares affect a banker’s mortgage application?

It all depends on how the shares are being utilised. If vested shares or RSUs are part of the remuneration package, the fluctuation isn’t actually that important. The few lenders who do accept this income stream base it on the value received when the shares were paid. You’d find that information on recent P60s.

If we have shares that are generating an investment income, or we’re directly leveraging shares with a private bank, their value can have a large impact on the actual borrowing itself.

In this scenario, banks will tend to take a ‘haircut’. This also applies when receiving income in different currencies. A haircut trims away a percentage of the total value to account for market fluctuations. Generally, that haircut ranges from 10% to 25%.

So if the value of shares changes as a mortgage case progresses, we have a good level of security in generating accurate mortgage figures – because the haircut deals with that.

Does being a self-employed banker change the application process?

It doesn’t necessarily change the process, but it does change the assessment. Lenders look differently at income for an employed applicant versus someone who’s self-employed.

Banks tend to use personal tax calculations, previously known as SA302s, for sole traders using their net profit. For directors of limited companies, the director’s salary and dividends are utilised for affordability purposes.

Most banks take an average over a two-year period. One high street bank can utilise one-year returns if it’s the first year, and a couple of lenders use the most recent year’s figures for affordability if it’s higher than previous years [information correct at the time of recording in October 2025].

One of the benefits for self-employed bankers is the ability to choose when certain income is taken for tax purposes. They can feather how much tax they pay and the income received. They may choose not to take all earned income within a certain year for tax efficiency.

The true earned income may therefore not be reflected in those personal tax calculations. Some banks therefore take the net profit – or share of net profit if it’s a limited company with multiple directors – as shown in the most recent two years’ finalised company accounts.

It sounds complicated, but it all depends on the overarching drivers for the client. We can look at this in multiple different ways for the self-employed.

Can I get a mortgage as a newly qualified banker?

We can use a signed contract straight away for mortgage lending purposes, even with a start date that’s actually in the future. Usually it needs to be within the next three months or so.

It’s the same for a newly qualified banker on their first contract. If there are specific provisions within the contract that stipulate higher earnings over a period of time, some lenders allow for that progressional rise in income for affordability. You can absolutely get a mortgage as a newly qualified banker.