Your Business and Industry

Stepping up to the plate to meet complex income demands

With the majority of 2020 and the early part of 2021 having a significant impact on many individuals’ income and financial situations, we anticipate that an increased number of cases will require specialist residential finance going forward.

This is apparent for both purchasers and those looking to remortgage who do not meet stricter mainstream mortgage criteria and individuals who have historical credit blips.

Specialist lenders are constantly evaluating their policies and product ranges to cater for borrowers with multiple or unusual income sources including those who have recently become self-employed and employed people with high commission or bonus.

How we cater for complex incomes

From regular communications with our intermediary partners, we realise that demand has steadily grown from clients with increasingly complex income scenarios, where circumstances now push certain borrowers just outside of high street borrowing choices. We expect this demand will continue to rise due to the pandemic and resulting economic conditions.

Thankfully, many specialist lenders are adjusting accordingly. For example, we have one of the broadest income allowances of any lender, allowing advisers to use 100% of an extremely wide range of income source types including retirement income, investment income and net rental income for our residential clients. We accept retained profits and one year's accounts for the self-employed and for the employed we only require people to have been in employment for a minimum of three months.

We are not the only lender to have expanded their proposition to meet the economic climate and it’s great to see competition intensifying, criteria becoming more sensible and a wider range of options emerging for various borrowing types. Where the high street lending community remains unable to meet the complex borrowing needs of the self-employed and those with various income streams, it’s vital that specialist lenders continue to step up to the residential mortgage plate.

View our residential range

FOR INTERMEDIARIES ONLY

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