How Many Payslips Do You Need for a Mortgage?

When you apply for a mortgage, one of the key factors lenders will look at is your income, and a major way of proving your income is through your payslips if you are employed. 

But how many payslips do you need to submit for your mortgage application to be processed?

In this article, we’ll break down how many payslips do you need for a mortgage, why they are important, and how this requirement might vary depending on your employment situation.

Why Are Payslips Important for a Mortgage?

Lenders need to confirm that you can afford to repay the loan, and the most straightforward way for them to assess your income is by reviewing your payslips. 

Payslips provide clear evidence of your regular income, including any bonuses, overtime, or commissions you might earn. This allows lenders to assess your affordability and determine how much you can borrow.

In addition to assessing your income, payslips also help lenders gauge your employment stability. 

Consistent employment and a steady income are indicators that you are a reliable borrower who can keep up with mortgage repayments.

How Many Payslips Do You Need for a Mortgage?

The general rule of thumb for mortgage applications in the UK is that most lenders will ask for three to six months’ worth of payslips. 

However, this can vary depending on several factors, such as:

• Your employment type (full-time, part-time and if you are using any commission,overtime or bonus income)
• Your lender’s specific requirements
• The type of mortgage you’re applying for (e.g., standard residential, buy-to-let)

Let’s take a closer look at what different situations might require.

Payslips for Employed Applicants

If you’re employed and applying for a standard residential mortgage, lenders will typically ask for three months’ worth of payslips. These payslips will help lenders assess:

• Your monthly income
• Any bonuses or additional benefits you receive
• The consistency of your earnings

In some cases, lenders may ask for six months’ worth of payslips, particularly if your income is irregular or you have recently changed jobs.

If you’ve been employed for a long time, three months’ worth of payslips is often enough, but a longer period might be required to show consistency in your earnings so bear that in mind.

Payslips for Self-Employed Applicants

Self-employed applicants face a different set of requirements when it comes to income verification. Since self-employed workers don’t receive payslips, lenders will generally require the following:

• Two to three years’ worth of accounts (prepared by an accountant or as self-assessed)
• Tax returns for the past two years
• Bank statements to support income evidence

In the case of a self-employed applicant, lenders look for a steady income over longer periods of time. If you’ve been self-employed for less than two years, it may be more difficult to get approved, as the lender may not have enough financial history to make a decision. However, some lenders will be more flexible, particularly if you have other strong financial backing.

Payslips for Part-Time and Temporary Workers

If you work part-time, temporary, or on zero-hour contracts, lenders may still accept your application, but they might ask for additional evidence of your income. This could include:

• Payslips covering a longer period (e.g., six months/annually) to show that your earnings are consistent, even if they fluctuate.
• Proof of additional income (such as bonuses, overtime, or freelance work) if applicable.
• P60s showing total income for the tax year. 

Lenders want to ensure that your part-time or temporary income is steady enough to cover the mortgage payments, so providing as much evidence as possible can help strengthen your application.

What If I Don’t Have Payslips?

Not everyone has payslips, and in some cases, such as if you’re self-employed, a contractor, or an entrepreneur, you may not have regular payslips. If this is the case, don’t worry—there are alternative ways to prove your income:

• Bank statements: If you receive regular payments into your account, lenders can use your bank statements to verify your income, alongside submitted SA302 tax calculations or LTD Company Accounts. 
• Contractor income: If you’re a contractor or freelancer, you can provide contracts, invoices, and bank statements to show your income.
• Proof of assets or savings: If you have substantial savings or assets, some lenders may be willing to overlook the lack of payslips, though this is far less common.

In some cases, lenders may ask for a combination of documents to ensure they have a full picture of your financial situation.

Special Considerations: Bonuses, Overtime, and Commissions

For applicants who receive additional income such as bonuses, overtime, or commissions, lenders will typically look at the following:

1. Consistency: Lenders will assess how frequently you earn additional income and how stable it is.
2. Documentation: Payslips showing your base salary along with any bonuses or commission payments, are crucial.
3. History: Lenders may request a longer period of payslips (e.g., six months) to ensure that these additional earnings are not one-off payments.

If you have earned regular bonuses or commissions for several years, it can be helpful to show that these payments are a normal part of your income. 

Some lenders will include these amounts when calculating your affordability, while others may only factor in your base salary, so it’s important to ask upfront.

What Happens If I Can’t Provide Payslips?

If you can’t provide payslips, there are still options available:

• Provide alternative income proof: If you’re self-employed or have a complex income situation, submitting your tax returns, accounts, and bank statements can help demonstrate your financial position.
• Joint Borrower Sole Proprietor mortgages: If your income is irregular or difficult to prove, a joint borrower sole proprietor mortgage could help you get approval. In this case, someone else (usually a family member) agrees to use their income and personal circumstances towards mortgage affordability.   
• Non-standard mortgages: Some lenders offer non-standard mortgages for people with complex income sources, including those without payslips. These mortgages may require more detailed paperwork or a higher deposit.

Mortgage Advisors We Work With Can Help You

It may be worth consulting a mortgage advisor if you’re unsure about how many payslips you need for a mortgage or whether your income is sufficient. 

A mortgage advisor can help you navigate the mortgage process, especially if you have a non-standard employment situation or need guidance on what documents to submit.

Mortgage advisors we work with can also help you find lenders who are more likely to accept your application, even if you don’t meet the usual requirements. 

They can save you time and effort, as well as help you secure a competitive interest rate.

Click here to connect with a mortgage advisor.

Frequently Asked Questions (FAQs)

1. How long do I need to be employed to apply for a mortgage?

Most lenders require at least three months of continuous employment to apply for a mortgage. However, if you’ve recently started a new job, some lenders may require a longer employment history and experience in a similar line of work.

2. Can I get a mortgage if I only have one payslip?

It’s unlikely that you’ll be able to get approved with just one payslip, as lenders typically want to see a consistent income over time. However, some lenders may consider alternative income proof if your job is secure such as the initially signed employment contract.

3. What if I’m self-employed but haven’t submitted my tax returns yet?

If you haven’t filed your tax returns, it’s best to do so before applying for a mortgage. Lenders typically require at least two years of tax returns to prove your income.

4. Do I need to provide payslips if I’m applying for a buy-to-let mortgage?

Yes, you’ll still need to provide proof of earned income, but lenders may be more focused on the rental income from the property you intend to buy rather than your personal income.

Your home may be repossessed if you do not keep up repayments on your mortgage.

All content is written by qualified mortgage advisors to provide current, reliable and accurate mortgage information. The information on this website is not specific for each individual reader and therefore does not constitute financial advice.