In association with The Mortgage Lender (TML), Steve Griffiths, sales and product director at TML said no matter what the income, the client’s experience and income consistency were key to getting these cases through.
“I was discussing a case last week at an event with two high-earning applicants with a low loan to value (LTV) but one of the applicants worked in financial services and had a very high reliance on his bonus, so we needed to count 100 per cent of that. The other applicant was a contractor with two separate employers – this is a good example of great customers, struggling with two more complex elements,” said Griffiths.
Both the brokers on the panel, Greg Cunnington, director of lender relationships and new homes at Alexander Hall, and Andrew Montlake, managing director at Coreco Mortgage Brokers, said they were seeing more of these client cases coming through their London-based offices.
Cunnington said: “It’s about understanding the background with these cases. We’re seeing a lot more people with two jobs, like delivery driving, for example. We had a doctor who used to do a three-day week, who has added two days locum shifts.”
He added that the most attractive jobs listed on applications have changed immeasurably too.
“We had a client who got all his income through Instagram. We got a specialist lender to take a look at the advertising contracts and his business banking statements – that was really interesting. In another first-time buyer case, this person had a relatively normal job, but all their income was going out to another person. We had to dig in and it turned out the guy lent his deposit cash every month to a friend, who returned it plus two per cent interest on top which the applicant viewed as a rock-solid income source,” said Cunnington.
The video panellists include Steve Griffiths sales and product director, The Mortgage Lender, chair, group editor of Mortgage Solutions, Victoria Hartley, Greg Cunnington director lender relationships and new homes Alexander Hall and Andrew Montlake, managing director Coreco Mortgage Brokers and chairman of AMI.
See the first and second parts of the TML complex income series here.
Sponsored content in association with The Mortgage Lender.
