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MortgageOS
Scenario Guide

Mixed Income Mortgage Guide

How to get a mortgage when your income comes from multiple sources — employment, self-employment, rental, or investments.

Updated January 20269 min read

What is Mixed Income?

Mixed income means your earnings come from more than one source or type. This is increasingly common in the modern economy, where many people combine employment with freelance work, rental properties, or side businesses.

Single Income

One source, one type

Example: £50,000 salary only

Mixed Income

Multiple sources or types

Example: £30,000 salary + £25,000 freelance

Mixed income is normal

More than 1 in 5 workers now have some form of mixed income. Lenders have adapted their processes to handle this, though the complexity means choosing the right lender matters more.

Common Combinations

1

Employment + Freelance/Self-Employment

The most common mixed income scenario. You have a regular job plus do freelance work on the side.

Example: Full-time marketing manager (£45k) + freelance consulting (£15k)

2

Employment + Rental Income

You work a regular job and receive rental income from buy-to-let or inherited property.

Example: Teacher (£38k) + rental income from flat (£12k/year net)

3

Multiple Self-Employed Incomes

You run multiple businesses or have several freelance income streams.

Example: Photography business (£35k) + online course sales (£20k)

4

Part-Time Employment + Part-Time Self-Employment

You work part-time for an employer and spend remaining time on your own business.

Example: Part-time nurse 3 days (£24k) + private practice 2 days (£30k)

5

Employment + Director of Own Ltd Company

You're employed but also run a side business through a limited company.

Example: Software developer employed (£55k) + Ltd company consultancy (£25k)

How Income is Combined

Each income stream is assessed according to its type, then added together for your total assessable income.

Example: Employment + Self-Employment

Employment salary£42,000 (100%)
Self-employed (2-year average)£23,500
Total assessable income£65,500
Estimated borrowing (4.5x)~£295,000

Assessment by Income Type

Employment Income

Counted at 100% of gross salary. Guaranteed bonuses and regular overtime may also count (often 50-100% depending on lender).

Self-Employed Income

Usually averaged over 2-3 years based on SA302s or accounts. May use latest year if showing upward trend.

Rental Income

Typically 75% of gross rent is counted (allowing for voids/expenses). Some lenders require 12-24 months of rental history.

Investment/Dividend Income

Usually needs to be regular and sustainable. May require 2-3 years of evidence. Some lenders don't count this at all.

Lender Approaches

Flexible Lenders

Will combine multiple income streams and use favorable calculation methods.

  • • Accept employment + self-employed readily
  • • May add rental income on top
  • • Flexible on self-employed history requirements

Examples: Some building societies, specialist lenders

Moderate Lenders

Accept common mixed income scenarios with standard requirements.

  • • Combine employed + self-employed (with 2+ years history)
  • • Rental income may be considered separately
  • • Standard documentation requirements

Examples: Nationwide, Halifax, some high street banks

Restrictive Lenders

May only count primary income or have strict requirements for secondary sources.

  • • May only use highest income source
  • • Strict requirements for self-employed portion
  • • May not count rental or investment income

Examples: Some mainstream banks, online-only lenders

Broker value

With mixed income, lender selection is particularly important. A broker can identify which lenders will count all your income streams and use the most favorable calculation methods.

Documentation Required

You'll need documentation for each income stream. This can mean a larger document package than single-income applicants.

For Employment Income

  • • 3 months payslips
  • • P60 (most recent)
  • • Employment contract
  • • Employer reference (sometimes)

For Self-Employed Income

  • • SA302s (2-3 years)
  • • Tax year overviews
  • • Company accounts (if Ltd)
  • • Bank statements

For Rental Income

  • • Tenancy agreements
  • • Rent bank statements
  • • SA302 showing rental income
  • • Mortgage statement (if mortgaged)

Standard Documents

  • • ID (passport/driving licence)
  • • Proof of address
  • • Personal bank statements
  • • Deposit evidence

Strategies for Success

1. Get All Documentation Ready

With multiple income streams, you'll need more documents. Gather everything before applying to avoid delays. Create a checklist for each income source.

2. Use a Broker Experienced with Mixed Income

Lender selection matters enormously. A broker who understands mixed income can find lenders who'll count all your income and use favorable methods.

3. Present Income Clearly

Create a summary document showing your income breakdown, sources, and history. This helps underwriters understand your situation quickly.

4. Consider Which Income to Emphasize

Sometimes it's better to focus on one strong income stream if the other has complications. Your broker can advise on whether to include or exclude certain income.

5. Build History for Newer Streams

If a secondary income stream is new, consider waiting until you have 12-24 months of history before applying. This opens more lender options.

The mixed income advantage

While more complex, mixed income can actually strengthen your application. It demonstrates diversification — you're not dependent on a single employer or income source. Present this as a positive.

Find lenders that work with mixed income

Get matched with lenders who'll count all your income streams fairly.

Get matched

Frequently asked questions