It will be enhancing its criteria for fixed term contractors meaning that more of that income will be considered when assessing a borrower’s affordability.

This change will be applied to all cases that have their first Decision in Principle (DiP) on or after 2 December, as well as cases which are reprocessed following an initial DiP decision.

In April this year, Nationwide returned to allowing bonus, overtime and commission income to be included as part of the mortgage affordability calculation.

From 2 December, Nationwide will also be changing the way bonus, overtime and commission is assessed, which increases the amount that can be used in the affordability assessment.

Henry Jordan, director of mortgages at Nationwide Building Society, said: “As a responsible lender, we always ensure that borrowers can afford their mortgage payments both now and in the future.

“These latest enhancements to our affordability criteria mean we are well placed to support more people purchase their property as well as those looking for additional borrowing.”