How to get a mortgage with complex income

23rd January 2018

Complex income mortgages

If you earn your income through a combination of regular overtime, bonuses and commissions, stocks and shares or pensions, then proving your total pay can be difficult when applying for a mortgage. But, complex income mortgages are possible and we can help!

Many high street mortgage lenders will not accept applications from those who do not earn a standard PAYE salary, as pay earnt through additional revenue streams is generally not guaranteed and therefore considered risky.

As expert mortgage advisors we take the time to understand all of your various earned and/or investment income sources. We know which lenders will consider your application and ensure that they receive all the necessary documentation, in order to get the best loan amount available to you.

Mortgage with commission, overtime and bonus income

If you earn a low basic salary, but receive regular overtime, commission and/or bonuses, you can use these payments to help lenders determine how much they will be willing to let you borrow.

Some lenders will allow you to use the full amount, whilst others will take 50% or an average monthly or annual amount. Each lender is different, but if you need to borrow the maximum amount, then we know which lenders to approach to ensure you can achieve this.

Proof of income required: Generally your last 3 payslips and most recent P60.

Mortgage car, shift and living allowances

Although car, shift and living allowances form a part of a growing number of people’s salaries, many lenders believe that these are used to support living costs, rather than a cash benefit that can be put towards your mortgage repayments. Thankfully, we have access to a number of mortgage lenders who will happily include your allowances as part of your income!

Proof of income required: Generally your last 3 payslips and most recent P60.

Mortgage on benefits and maintenance payments

Benefits and child maintenance payments can be used to support your mortgage application, if you receive a regular income from a job and/or pension. These can include:

  • Child Tax Credit
  • Child Benefit
  • Working Tax Credits
  • Disability benefits including; Incapacity Benefit, Disability Living Allowance, Attendance Allowance and Employment and Support Allowance.

Many banks and building societies won’t lend to you if your income is solely from benefits. However, there are other lenders who will consider your application, which we can help you with!

Questions about getting a mortgage as a single parent? Click here to learn more.

Proof of income required: An assessment from the relevant authority.

Self-employed mortgage

If you’re self-employed and struggling to get a mortgage from your local bank, there are other well-known and respected lenders who will view the entirety of your income, and may be willing to lend to you – Great if you only take a modest tax-free personal income from your business, rather than a regularly paid salary!

Proof of income required: SA302s and 2 – 3 years’ worth of accounts.

Second job mortgage

Income from a second job will generally be considered in addition to your main source of income, if you can prove that the work is regular.

Lenders will usually want to see that you have been able to hold both jobs for 2 years, in order to show that you are able to sustain them at the same time. A second job with no prior history, will be viewed as a risk.

Proof of income required: Your W2 form and confirmation from each of the employers you have worked for, during the requested time period.

Pension mortgage

As you’re no longer earning a regular salary, many mortgage lenders will not be willing to lend to you, as you are deemed too much of a risk. However, there are some lenders who will be willing to consider your application, based on the income received through your pension/s, if you have a good credit history and a pension income large enough to cover your repayments.

Proof of income required: Original copies of your pension documents and your annual pension statement.

Mortgage with rental income

Revenue from rental properties can be used to support your application. Not all lenders will accept this source of income. But we know who will, and will therefore approach the lenders most suited to your needs, to ensure that your application is a success!

Proof of income required: Accounts for your property business and/or tenancy agreements.

Overseas income mortgage

If you are looking to get a mortgage in the UK and earn your income in a currency other than pounds sterling, there are lenders who will consider your application.

If you application is successful, your chosen mortgage lender will however convert your mortgage loan into pounds, using either their own currency exchange rate or the daily rate.

Changes in the exchange rate may increase the sterling equivalent of your debt

Proof of income required: Generally your last 3 payslips and most recent P60 or equivalent, if working outside the UK.

Looking to get a mortgage with complex income?

No matter how complicated your income situation, there are always options when it comes to getting a mortgage. We understand that the mortgage process can sometimes seem stressful, especially when you don't have a simple, monthly paycheck, which is why it's our job to get rid of all that stress for you.

Contact the CLS Money team today for a free, no obligation quote. We take into account the complexities of your individual situation, to provide personalised advice and obtain the best complex income deal for you.

Book a call now and speak to one of our friendly complex income mortgage experts.

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