Basic Salary Plus Commission — How Lenders Should Assess Estate Agent Income
The right approach for assessing an estate agent's income is to treat the basic salary as the guaranteed floor and the commission as a variable component that can be counted based on a track record. For an agent who has consistently earned commission at or above a certain level for two or more years, that commission is not truly variable in the sense of being unreliable — it is a predictable component of their total earnings that reflects their professional performance and the volume of business they generate.
Many mainstream lenders, however, apply blanket policies rather than individual assessment. They may refuse to count commission income at all, or they may count only a percentage — 50% is common — of the most recent year's commission regardless of how consistent the track record is. This is a blunt instrument that significantly disadvantages estate agents relative to salaried professionals with equivalent total incomes.
Specialist lenders with policies designed for commission-earning borrowers will typically average the last two years of total earnings — basic plus commission — and use that average as the base for income multiple calculations. Where an agent has three or more years of consistent commission history, some lenders may use the most recent year rather than a lower average, if income has been rising. A broker can advise on which approach is most favourable given the specific pattern of earnings.
The loan-to-value ratio an estate agent can demonstrate also matters. Those with significant equity in their property — perhaps from price growth in the areas where they work — will be in a stronger position overall. Lower LTV borrowing is easier to get approved even where income complexity exists, because the lender has less risk exposure. Agents with properties in strong regional markets who have been homeowners for several years may find this works significantly in their favour.
OTE Figures, Market Cycles, and Evidencing Commission
One challenge specific to estate agents is that their commission income is directly linked to the health of the property market — meaning it can vary not just with individual performance but with broader market cycles. The property market in 2020-2021 was exceptionally active, producing high commission earnings for many agents. The market in 2023 was significantly more subdued, with fewer completions and lower average commission per transaction in many areas. An agent applying for a mortgage with 2023 income evidence is in a different position from one applying with 2021 or 2022 figures.
This market-cycle variability is one reason lenders are cautious about commission income in this sector. However, it is important to distinguish between market-driven fluctuations and fundamental income unreliability. An experienced estate agent with a strong client base and local market knowledge will generate income across market cycles — the amount will vary, but the capacity to earn commission is genuinely sustainable. Specialist lenders assess this appropriately.
When evidencing commission income, estate agents should provide payslips covering at least 12 months, P60 documents for the last two tax years, and bank statements showing total income received. Where commission payments are made on a separate payslip or at irregular intervals (tied to completion dates), it is helpful to provide a narrative summary alongside the documentation explaining how the commission structure works. A broker experienced in estate agency remortgages will know how to present this to maximise the income that can be included.
Self-employed estate agents — whether sole traders running their own agency or partners in a small firm — will need to provide SA302 tax calculations, tax year overviews, and full accounts for the last two or three years. The self-employed route requires careful presentation, as the net profit figure on tax returns is what most lenders will use, which may not fully reflect the cash generated by the business if there are significant business expenses or capital investments.
