Complex mortgages enable people who earn money through unorthodox incomes or via multiple sources to obtain a mortgage. This solution is ideal for individuals who make money through a foreign currency, have several different types of earnings, or have irregular income patterns to obtain a complex mortgage for a property purchase.
However, some banks and lenders don’t deal with complex mortgage cases very frequently, so it can be difficult for them to handle your application appropriately. As a result, you could miss out on the total loan value you need despite earning enough to qualify for it legitimately.
Many people struggle to be accepted for a mortgage because they earn an income that lenders perceive to be complex. For example, company directors typically make directors’ loans, dividends and other income streams on top of their base salary, which some lenders can struggle to factor into an application.
Professionals who rely on bonuses or overtime fees, like accountants, barristers and doctors, and, in particular, freelance workers can struggle to prove their actual income figure to a mortgage lender. Contractors whose earnings fluctuate based on big projects and bring in irregular payments throughout the year can struggle to demonstrate the actual value of their income.
Entrepreneurs may have several income streams from various business ventures, stocks and property portfolios, which can also be challenging to present when applying for a mortgage. People who work in the gig economy tend to earn more at certain times of the year, which means they have irregular payment times and amounts. That can see them struggle to be accepted by mortgage lenders, who view them as a higher risk.
Self-employed mortgages are more complex because you need to provide three years of accounts to demonstrate a regular income. This makes it challenging for self-employed people to reach an agreement with a lender as they typically don’t receive the same regular payments as full-time employed people.
It’s vital to be able to prove you have a consistent source of income and regular tax returns to support your mortgage application. But it’s still possible to obtain a mortgage even without recent tax returns or wealth source proof. As more people become self-employed, lenders are increasingly open to complex mortgage opportunities; you just need to know how and where to get them.
One of the most common complex mortgage situations is for people who live and work abroad but want to purchase a property in the UK. Ex-pats often find it challenging to verify their income as many UK-based lenders will only acknowledge income earned in pound sterling, struggle to gain background checks and view exchanging currency as too high risk. Furthermore, foreign currency mortgages are very rare, which makes the process more complex and less likely that lenders will agree to them.
But ex-pats can get a mortgage if they speak with an expert adviser that understands the process and documents required. Foreign currency mortgages are rare, making it more complex and less likely that lenders will agree to them. For instance, many UK-based lenders will only acknowledge income earned in pound sterling and view exchanging currency as too high risk.
Like ex-pats, they tend to struggle to get a mortgage, but foreign nationals can get a mortgage in the UK. The British property market remains one of the most liquid and competitive in the world.
But, regardless of whether you are a British citizen or live overseas, mortgage applications can be lengthy and complex. You need to speak with expert advisers with experience in sourcing and negotiating the most advantageous complex mortgage deals.
Special purpose vehicle mortgages are more complex, so fewer lenders deal in them. For instance, each lender has its own set of SPV mortgage criteria it uses to decide whether to approve an application. In most cases, lenders want to see your credit history, past investments, the number of directors on your application and the property you’re looking to purchase to make their decision.
SPV mortgages are often more complex as they are their own legal entity and are created with a specific objective. For landlords seeking buy-to-let mortgages through an SPV, tax reductions are usually a decisive factor. The tax advantages of purchasing a property through a limited company can be significant, whether you are just starting out or already own multiple properties. If you plan on acquiring a property as a group rather than as an individual, an SPV mortgage can make dividing shares and assigning financial responsibility more straightforward, saving you valuable time.
Trust mortgages are complex to obtain as many lenders are unwilling to consider this form of income. So you need to look to specialist lenders that understand the nuances of trust mortgage lending.
An equity release mortgage enables homeowners to borrow against the equity they’ve built up in their property. Retail banks tend to have a rigid approach to equity release, but private banks and specialist lenders are more flexible and understand the specifics of this complex mortgage type.
Securing a complex mortgage can be extremely difficult, so you need expert assistance. Hectocorn’s network of private, specialist lenders can help you obtain the most competitive complex mortgage rate that best suits your specific situation and requirements.
We have extensive experience arranging self-employed mortgages and helping people with varied incomes, offshore wealth and earnings in foreign currencies to purchase properties. For example, foreign currency mortgages are increasingly popular with our ultra-high-net-worth individual client base as a money-saving tactic.
Hectocorn analyses your financial situation and negotiates directly with lenders to obtain the most advantageous complex mortgage terms.
Discover how Hectocorn can help you obtain a complex mortgage regardless of your occupation, where you reside and the currency you earn your income in.