05-02-2025

For NHS staff and other professionals working variable hours, overtime and shift pay can make up a significant portion of their income. However, when it comes to securing a mortgage, many applicants worry about how lenders will assess these earnings. The good news is that lenders do take overtime and shift pay into account—but how much they consider varies.

In this guide, we’ll explain how mortgage lenders assess variable income and provide practical tips to improve your chances of securing the mortgage you need.

How Lenders Assess Overtime and Shift Pay

Most lenders will accept overtime, shift pay, and other variable earnings when calculating how much you can borrow. However, they take different approaches to determining how much of this income is reliable:

  • Some lenders count 100% of overtime and shift pay, provided it is regular and well-documented.
  • Others use an average, typically looking at payslips from the last 3, 6, or 12 months to assess consistency.
  • Some lenders only consider a portion, such as 50% of overtime income, especially if it fluctuates significantly.

Because policies vary, working with a mortgage broker can help identify lenders most likely to consider your full income.

Maximising Borrowing Potential with Variable Pay

If overtime or shift pay is an essential part of your earnings, there are steps you can take to strengthen your mortgage application:

  • Keep a Record of Consistent Overtime

Lenders favour applicants who can demonstrate a history of consistent earnings. If you regularly work overtime or receive shift allowances, having at least 6–12 months of payslips to show a pattern of extra income can improve your case.

     2. Request a Letter from Your Employer

Some lenders will accept a letter from your employer confirming your typical working hours, overtime opportunities, and any contractual shift pay arrangements. This can be particularly useful if your income fluctuates.

3. Understand Your Lender’s Criteria

Each lender has different rules for assessing additional income. Some will be more generous than others, and certain high-street banks may take a more restrictive approach. A mortgage broker with experience in securing mortgages for NHS staff and hospital workers can help find a lender that fully recognises your earnings.

4. Check Your Credit Report

A strong credit score can help balance out any concerns a lender may have about fluctuating income. Regularly checking your credit report and ensuring it is accurate can improve your chances of securing a favourable mortgage deal.

5. Consider a Specialist Lender

If your income is made up of a high percentage of overtime or shift pay and mainstream lenders are hesitant, a specialist lender may be a better option. These lenders often have more flexible criteria for assessing variable income.

Finding the Right Mortgage as an NHS Worker

Navigating the mortgage market with variable income doesn’t have to be difficult. Many lenders understand the unique pay structures of NHS staff and hospital workers and are willing to consider overtime and shift pay when calculating affordability.

At Fox Davidson, we specialise in securing mortgages for professionals with complex income structures. Our team can match you with the right lender to ensure your full earnings are taken into account.

Get Expert Mortgage Advice Today

If you’re an NHS worker or hospital employee looking for a mortgage, contact Fox Davidson today. We’ll help you find the right lender and guide you through the application process.