Getting a mortgage with a complex income can be tricky, it’s definitely possible but each lender will calculate your income in a different way, some lenders may not include parts of your income where others would. If you have a complex income structure its best to take advice from an expert mortgage broker who will carry out a thorough fact find and present you with potential options.
The majority of high street lenders and also mortgage broker’s ideal applicant is a full time salaried employee, this makes their job easy as there is no complexity to their income. Once you add in complexity lenders view this as not the norm and can perceive it as higher risk, this may mean you get declined, offered a smaller amount or even require a bigger deposit.
With more people than ever in the UK becoming freelancers, contractors or starting a business it is forcing lenders to develop criteria for more complex incomes which is great but they are not all their yet, at Get Me My Mortgage we have a network of knowledgeable mortgage brokers with years of experience helping our users with complex incomes secure their mortgage.
.What is classed as a complex income?
If you have multiple income streams, commission, investment income and many more this will make your income classed as complex, for example if you work full time for one employer but then have a weekend job as a tutor (self-employed) then you would be classed as having a complex income. When it comes to applying for a mortgage you will need to know how much you are able to borrow before you can decide on your future home. You will need to supply the potential lender with all forms of your income, this will give them a clear picture of your income and help when they are making their affordability calculations. If you were to only supply the lender with your main source of income then you may not be able to get a large enough mortgage to get the kind of home you want so it is important to ensure lenders have all the information.
Below is a list of some (not all) of the incomes that you may receive that you would want lenders to take into account when working out how much they are willing to lend to you.
- Full time income
- Part time income
- Sales Commission
- Investment Income
- Government benefits
- Freelancer/sole trader income
- Rental income from buy to let
Why complex incomes can be an issue
The reason that complex incomes can make your mortgage application trickier is that lenders like easy applications that tick all of the boxes and don’t require much additional work. They prefer applicants with no gaps in employment or earnings and a clean credit history. When there is an issue with credit history or a variable income this increases the potential risk of the borrower not being able to pay back the mortgage. In this situation it may be that high street lenders will decline your application or charge a higher interest rate or need a larger deposit.
While many lenders can be extra cautious when it comes to self-employed applicants or applicants with complex incomes it doesn’t mean it’s not possible to get a mortgage. There are also niche lenders that your broker will be able to approach that are more geared towards more complex situations. Specialist lenders are regulated in the same way as better known high street banks. These lenders are less automated in their lending process which means that are more likely to review an applicant on a case by case basis. This is ideal for an applicant with a complex income as it means there is a much lower chance your application will be rejected due to your income.
Get Expert Advice
If you feel like you would benefit from speaking with an expert mortgage broker that will has the knowledge and experience of helping applicants with complex incomes get their mortgage approved, Get in touch. You can call us on 0800 368 8879 or fill in one of our enquiry forms and we will call you back