Use Tips And Gratuity Towards Your Mortgage Affordability

Fox Davidson specialise in securing mortgages for clients that receive tronc income – but you may be asking yourself; what is tronc income, do I qualify? What is so special about tronc income mortgages? We have the answers.

A tronc is an agreement with your employer to pay you an income separate to your basic pay. Tronc is often used to share out tips and service charges. The standard definition is: (in a hotel or restaurant) a common fund into which tips and service charges are paid for distribution to the staff.

Common in the catering/leisure sectors as well as the hospitality and tourism industry, clients receiving tronc income are often misunderstood by mortgage lenders. This income is a perfectly acceptable source and should always be utilised in calculating your mortgage affordability!

How is tronc income treated by mortgage lenders?

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Some mortgage lenders will accept tronc income in the same way as overtime or commission. If you can prove it is paid regularly then we have lenders that can use 100% of the income towards your affordability. Don’t forget – employees in receipt of tips or gratuities via a tronc are still liable to pay income tax. The tronc earnings must be formally registered with HMRC.

In 2019 the Fox Davidson team were approached by a chef working in a top London restaurant. The chef’s basic salary was not enough for mortgage purposes to buy their first home – high street banks would not consider approving a tronc mortgage, but we had a solution. One of our team approached our trusted lenders and by including their tronc income in our calculations, the chef had the affordability needed to purchase their first home.

Using our whole or market options and our experience of securing mortgages using tronc income we were able to increase their affordability from £320,000 to £550,000. The couple purchased their first home with our help. Isn’t it time we helped you with your purchase?


To discuss your mortgage requirements including tronc income mortgages and complex income situations do contact one of the team on 01179 897950 or email