Firstly, we should look at what constitutes a Complex Mortgage. This refers to a person with an income from a variety of sources, usually not from a traditional nine-to-five job.
So, what sources of income would fall under complex? This could range from lump-sum payments, received infrequently, to payments received in a different currency. Below are some complex income occupations:
- Entrepreneurs– if you have several sources of income, such as rental property, and several businesses. This could be considered complex, as your earnings could fluctuate depending on how often your property is let out, or how well your businesses perform.
- Contractors – some contractors are employed on a project-by-project basis. Some projects could be seasonal and short-lived, although paying higher.
- Company Directors – company directors may receive their income from several income sources, such as dividends, and a salary from the business.
- Freelancers– this could be from a variety of projects, some of which could be ongoing, others short-term. This will in turn impact the income you will receive monthly. This would show irregularity in the income, even though if at the end of the year your overall income exceeds requirements for the mortgage you would like to take out.
- Medical and Legal Professionals – these professionals may have multiple streams of income, from consultancy and specialist work.
The process to try to obtain a loan from a typical lender can be frustrating, especially if the buyer has an overall annual income exceeding mortgage requirements. Typical high street lenders will not have the appropriate products available for inconsistent income, or alternative currency income and thus may not be able to offer you a full loan amount.
Speak to an independent broker
It would also be a good idea to speak to an independent mortgage broker as they will have experience dealing with a range of mortgage applications. They will also be well versed with the types of lenders that provide mortgage products to those with complex incomes. They will also be able to advise on what your options are, and they will understand what a potential lender is looking for in an application.
Finally, we would suggest getting all your paperwork in order, such as income sources, bank statements, and company accounts. This will help a broker and lender assess your suitability for a loan.
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