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Complex income in 2021 – talking through the trials and tribulations

By 15th July 2021May 31st, 2023Blog, Mortgages

Roger Morris, Group Distribution Director – Kent Reliance for Intermediaries

Imagine a customer approaches you looking for help securing a residential loan: Stephanie – a thirtysomething, self-employed contractor working in advertising who, despite the challenges thrown at them by COVID-19, has managed to continue working through the pandemic.

However, the inconsistent nature of her work and her fluctuating income proves to be a challenge in helping her get a loan. So, how can you, as a broker, provide the support she needs?

The COVID-19 pandemic has brought many challenges and changes to the housing marketing. Most notably is the sustained activity following the introduction of the Stamp Duty holiday, which has led to the average UK house price rising to a record high of £254,606.

Unfortunately, for some, this makes the prospect of taking that next step on the property ladder, or even getting a foot on the lowest rung, all the more challenging. But for contractors and self-employed workers supporting themselves and receiving inconsistent income, this becomes a bigger mountain to climb.

However, despite the challenges that those with complex income have faced, there’s still a large number of individuals working for themselves, which means the need for specialist lenders to support these prospective buyers remains more important than ever.

But it’s not just lenders that play an important role.

The importance of you

If you’re a broker who regularly deals with complex income cases, you no doubt understand the difficulties your self-employed and contractor clients are up against in 2021.

But how exactly can you support those who need it most?

Well, I’d encourage you to recognise your importance as a broker. Remember, you play an important role when it comes to supporting applicants with inconsistent or unconventional income.

Buyers with varied income will often go to a broker as their first port of call, aware that their situation needs the support of an expert. They’ll depend on your understanding of the market, knowing your support could be the best chance of them being approved for a loan.

Of course, this puts pressure on you, and knowing where to turn can seem a bit daunting at times. However, I can’t stress enough that it all comes down to having good relationships with experienced lenders and knowing how well-positioned each lender is to support a client’s specific circumstances – however challenging or straightforward they may be.

Roger Morris

Kent Reliance for Intermediaries