If you are an employee, getting a mortgage is usually fairly straightforward as long as you meet lenders’ affordability criteria. However, there are many more borrowers who don’t come under the PAYE umbrella – self-employed professionals, company owners, those using net profits, partners in limited liability partnerships (LLPs) and those who receive bonuses or with vested stock who have more complex income structures and can find it trickier to get a mortgage.
This is where it is particularly important to use a broker who understands complex income streams and knows which lenders to approach to get the best terms. At AWS Private Finance, we have plenty of experience finding solutions for clients who would otherwise struggle to get a mortgage, even those with good incomes such as partners in the big four accounting firms. We regularly deal with clients who have recently been promoted to partner with a significant pay rise to match and who therefore wish to upgrade to a bigger property but don’t have a track record of income such as payslips or invoices to evidence that income. In these circumstances, we know which lenders to approach who are prepared to calculate affordability based on a partnership letter confirming earnings.
For company directors and shareholders whose income is paid in dividends, this can fluctuate depending on what is happening with the company and whether profits need to be retained by the business. While conventional high street lenders may struggle to lend on this basis, there are lenders who will take projected income into account and offer flexible solutions.
Those in receipt of large bonuses for a significant proportion of their income will also find high-street lenders have very different approaches as to how much of these they will take into account when working out your overall affordability. We can draw upon our good working relationships with many high street and private banks with the right connections and underwriters to talk to who better understand these various sources of income. Get in touch for more information.