Barclays is making it easier for customers who earn bonuses, overtime or commission to take out a mortgage.
The lender is increasing the cap on these forms of income meaning it will take a larger proportion of these earnings into account when it calculates affordability.
Previously these forms of income were capped at a value equal to the customer’s basic salary plus allowances. But Barclays will now consider bonus, overtime and commission income up to four times the basic salary plus allowances.
As an example, someone in a commission-heavy industry on a basic annual salary of £30,000 per annum, but earning £120,000 in commission, would previously have been considered to have income totalling £60,000.
Under the changes, up to £150,000 could be taken into account, said Barclays.
The move comes after Barclays recently enhanced affordability calculations in other areas, including for the self-employed, interest-only borrowers and buy-to-let.
Lee Chiswell, head of mortgages at Barclays, said: “We know that affordability is probably the greatest barrier for most consumers who want to buy a home.
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“We’ve taken a long look at how we can support customers, particularly first-time buyers, and as a result have made several tweaks to our lending criteria.
“Taken together, these will make all the difference for a range of people with different income types, getting people into homes that would previously have been out of reach.”
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