Blog post
March 6, 2024

Case Studies: Tackling ‘complex’ incomes for homeowners

To see our Residential Mortgage products, get an instant quote here.

With how the world of work and income has changed, lenders need to be flexible to find solutions for homeowners.

Here are three examples of cases with traditionally ‘complex’ incomes we were able to support through our Residential Mortgage range. 

  • New house purchase for couple with multiple income sources and a self-employed applicant

Location: Norwich

Loan amount: £223k

LTV: 79.71%

A traditionally ‘complex’ case which was offered within 15 days. 

What made it appear complex? Sources of income and deposit. 

  • The deposit was going to come from a capital raise on their existing Buy-to-Let property, and the intention for their current home was – after they moved – to rent it out
  • The income came from Applicant 1’s sole trading in addition to rental income
  • Applicant 2 was on maternity leave and would not return for another 6 months, so her income had to be based on what her expected return to work salary would be.

Despite these moving parts, the underwriter was satisfied they could calculate the appropriate LTI and affordability for their needs. 

Each area of income was able to be factored in, including understanding Applicant 1’s upward trend from their accounts supported by their business statements. 

By working with Applicant 2’s employer (NHS), we were able to get assurances on their return to work salary and proceed with the mortgage, with a sustainable level of income for the mortgage amount assured through our common sense approach to supporting homeowners into their next home. 

The property was valued within 4 days of instruction to allow us to progress the case quickly.

  • First home for couple getting income from three sources

Location: Fife, Scotland

Loan amount: £173k

LTV: 75.43%

The applicants were looking to purchase their first home, a very rural property in the west of Fife in Scotland. 

Built in 1882, they had saved up a 25% deposit we were easily able to evidence through Open Banking. 

This was another example of a case where other lenders may consider their income to be complex, as it was derived from two businesses and a partnership. 

The income from the partnership comes from a rental cottage they own. 

One limited company was for organising the lets of third-party holiday properties, and finally the other business was a limited company cleaning rental properties. 

The underwriter worked with the broker to ensure that it was clear at all stages what we would need in order to evidence income from these sources and reviewed them within one day of submission. 

Open banking and Jumio (applicant self-verification) were used as standard to reduce the need for the broker to provide documents and to speed up the app to offer.

  • Large loan for owners of multiple shops

Location: Bedhampto

Loan amount: £551k

LTV: 74.59%

A large loan for another applicant with a ‘complex’ income stream. 

An owner of several small shops, we used individual company accounts to verify the various income streams from 6 shops total.

To add to the challenge of verifying this income:

  • They all operated independently
  • All had non-overlapping accountancy periods
  • Had been trading for different periods
  • Several accountancy periods had recently changed. 

Despite the intricacies, we were able to help them remortgage with the intention of using an advance for debt consolidation and some refurbishments and improvements. 

Given all of this, it was incredibly impressive to offer in just 16 days. 

To see our Residential Mortgage products, get an instant quote here.

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LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). 

LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc. LendInvest plc is a limited company registered in England No. 08146929. Registered office at: 8 Mortimer Street, London, W1T 3JJ.

Regulated lending is provided via LendInvest Loans Limited. Borrowing through LendInvest Loans Limited involves entering into a regulated mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.