Complex Income Mortgages: Our Approach in the Market
As we celebrate the 250th anniversary of the formation of building societies, from the beginning of Ketley's Building Society in 1775 to now over 42 in the UK, we continue to pave the way for new ways of saving and helping borrowers achieve home ownership.
In particular, building societies like us are now well-established in the complex income mortgage market.
While this may seem distant from our traditional roots, it is an extension of our current service, helping borrowers who may have non-traditional income sources join the property market.
What is complex income?
Complex income is income that derives from multiple sources or structures, whether that is from side hustles, investments, tax implications or through a combination of various earning avenues.
In a digital world and cost of living crisis, complex income has become the new normal. According to a recent study by Finder, over 39% of people in Britain have a side hustle, with average earnings of £914 a month.
Since the formation of the internet, people can now earn multiple income streams straight from their laptop. Whether that is starting an online business selling clothes online or earning from monetisation on a YouTube channel, while still working your typical 9-5.
While some of these income sources may fall out of the traditional scope of standard employment, these new ways of earning a living are sometimes looked at differently on a mortgage application, making it harder for those borrowers to secure a loan.
Can I get a mortgage with a complex income?
Yes, you can get a mortgage with us with a complex income. When we receive a case by a broker, we look beyond the traditional scope and assess their client's circumstances and affordability on a case-by-case basis.
Our underwriting is run through a human approach and not through robots, where other mainstream lenders fall short and may not place your case.
When we assess the individual's affordability, we review circumstances like multiple income sources, fluctuating earnings, or non-standard employment.
5 complex lending solutions we offer
At Dudley Building Society, we understand that every borrower's situation is unique, which is why we tackle each case with a flexible approach and offer a personalised solution to their client.
Here are some of the solutions we offer:
1. JBSP Mortgages
A prime example of our innovative approach to complex lending is joint borrower, sole proprietor (JBSP) mortgages.
For anyone unaware of how these work, these allow multiple income sources—including second jobs and self-employment earnings—from up to four applicants to be considered.
This also doesn’t rule out non-family members, offering more flexibility for borrowers who need that additional financial support to secure a mortgage.
2. No upper age limits for older borrowers
One of our key selling points is our lending in and into retirement propositions. We don’t believe in putting arbitrary age restrictions on borrowers, which is why we impose no upper age limit and accept 100% of various pension types, including state, private, and self-invested personal pensions.
This flexibility is particularly valuable for retirees and expats who rely on multiple pension incomes or foreign earnings.
3.Self-employed borrowers considered
For self-employed borrowers, getting a mortgage may feel even more unattainable. According to a recent study by Together Money, over 87% of self-employed people believe it is ‘much harder’ to get a mortgage on a home.
At Dudley, we assess affordability differently than mainstream lenders. Rather than relying solely on salary, we consider retained profits, dividends, and even projected earnings, which gives business owners like self employed workers, more opportunities to secure a mortgage on a house.
4. Foreign income for expats accepted
For expat borrowers, we offer more accommodating criteria than many mainstream lenders. We don’t apply a ‘haircut’ to their foreign income, so if the borrower is earning in another country, we’ll accept 100% of that income. This also applies to self-employed earnings as well.
This is a reflection of how societies like ours have evolved over time. We’ve grown from just providing lending in local communities to now also helping borrowers lend abroad.
5. Flexible income considerations
What sets us apart from many mainstream lenders is our case-by-case approach where affordability is reviewed by our human underwriters.
This allows us to assess cases against more unique circumstances and consider various income streams like:
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Rental income from annexes or Airbnb
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Benefit income or foster income
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Dividend income from limited companies
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Foreign earnings from self-employed expats
Cases with us can be placed as long as they still have a stable and sufficient income to meet affordability requirements.
How to get a complex income mortgage with us
As we are an intermediary-only lender, we work exclusively with brokers when placing a case.
Here is a short and simple summary of the process;
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Clients must contact a broker and submit their documents, including proof of income, bank statements and tax returns.
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The broker will then submit a Decision in Principle (Dip) application with us for us to assess.
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Our team of underwriters will conduct a full assessment, reviewing affordability and ensuring the clients requirements meet our lending criteria.
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If the case is approved, we will inform the broker the application has been accepted and an offer can be made.
Please note, that all Dips are not accepted immediately and may require a more thorough assessment. Clients with complex circumstances might require more time and how long, will depend on the complexities of the case.
You can find out more information about our Dip to Offer Process.
Final Thoughts
We recognise that the mortgage market is constantly evolving. With new income streams generated by the minute, complex income is truly becoming the new normal—yet some mainstream lenders are continuing to ignore it.
We believe in giving every borrower a fair chance. With our human approach to underwriting, we can assess a client's full financial picture, rather than relying on robotic systems that may deny a case.
By offering personalised lending solutions, we ensure that borrowers with complex income streams, whether that is from self-employment, expats earning earnings abroad, multiple revenue sources, or retirement funds, are not denied a mortgage due to their complex circumstances.
If you’re a broker who has a cllient with complex circumstances, get in touch with your local BDM. to discuss how we can help place your case.
About us
We are a broker friendly lender and we would love to hear from you. Follow the links to find out more:
Find out more about our Intermediary mortgage product range.
Check out our latest mortgage rates and product guides
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