What does complex income really mean and how does it apply to mortgages? For many lenders, the term covers people who don’t have a single source of income, providing a predictable monthly or weekly income.

The world has changed a lot, and many workers are now looking for more flexible arrangements or different approaches to earning a living. At Saffron we believe many lenders have failed to keep pace with changes in working practices, and adapt their mortgages and application policies accordingly. Many can have a very narrow view of what is an acceptable profile for a prospective customer. When people speak to us however, we just see individuals and families looking for a way to buy or build a new home. We try to help in all cases.

But before talking about how we do this, let’s take a quick look at what the industry might classify as ‘complex income’.

Busy Family Home With Mother Working As Father Prepares Meal.

What does complex income really mean?

  • You might just have started your own business and have only one or two years of accounts. There are specialist mortgages when you are self-employed which could help with this.
  • You might be a regular contractor who finds your arrangements deter high street lenders.
  • You could work in a niche industry considered too risky to lend to, such as the performing arts or professional sports.
  • Your income might regularly contain bonuses or overtime, and make up a high percentage of the total. The variable nature of bonuses and overtime can make the income fluctuate and therefore more difficult to predict.
  • You might be going through a separation and needing a lender that can help you with a mortgage when divorced, and to acquire your new home whilst undergoing this major life change. When couples separate their finances undergo a significant change and future projections may look very different and less predictable in the short term.
  • You could have more than one job or need a mortgage when changing jobs.
  • You may be relying on investments or a pension for your income and need a mortgage when retired.
  • You may have had some financial difficulties in the past, but are now in a better position and looking for help to move on.
  • You could be an agency worker, for example an NHS nurse working via an agency.

These are examples of what the industry would define as ‘complex income’ and we know it can be difficult for people to get access to a home loan. There are many other examples, and the problem people face is that their circumstances don’t easily fit the various boxes that mortgage providers have to tick for their computers to make a decision.

How Saffron Building Society can help you

We don’t have a complex income mortgage product as we don’t believe there is a one size fits all solution. What we have is a team of advisers with the flexibility to look at your circumstances and make every effort to find a solution that will work for you.

We look at everything surrounding your application and take it into account before deciding how we can help. For example, we’ll look at your income structure over several years and your plans for the future.

In short, we try to help rather than assess you against a narrow set of measures.

We’ll also try to give you advice if we can’t lend to you when you apply. If we can’t help, we may be able to advise you on how we can help in the future when your circumstances have changed. In the past we’ve been able to advise some of our customers on changes they need to make to their finances, and been able to lend to them at a later point.

Our mortgage range

Saffron Building Society has a wide range of mortgages. Our products and services are designed to assist people with very specific requirements, or with finances that many high street lenders are uncomfortable touching. For example, if you already own a house but find that raising the money for your next move is taking time, we have a range of products which require a smaller deposit.

We take the time to get to know you and your plans, which means we’re able to help home buyers with contractor mortgages and the self-employed mortgages in the types of circumstances mentioned above. We can review your particular position and discuss it with you before reaching a conclusion.

We also offer discount mortgages which give you a reduction from our standard variable rate for an agreed period, meaning lower initial monthly payments as you settle into your new house. There’s also no arrangement fee, to help limit the costs of your move.

Saffron’s personalised advice

If you are looking for a mortgage, but you have been having problems securing something suitable, then we can talk to you about what we can do to help. Our expert advisers are available to you throughout the entire application process. Unlike many lenders, with Saffron Building Society you have one point of contact throughout the entire process, and won’t find yourself constantly talking to people in a call centre or speaking to someone unfamiliar with your details.

Finally, a person, not a computer, will make the final decision. If you want us to try to help then please call us on 0800 072 1100 to arrange an appointment, or send us a message through the contact us page.

You can access our mortgages through Saffron Mortgage Finders or through your mortgage broker.