The Covid-19 pandemic has brought many changes to our lives — from how we socialise to the way we work. Unfortunately, such changes have also meant many unwanted challenges for people looking to purchase a property.
With the average UK house price having risen to a record high of £254,606, the prospect of taking that next step on the property ladder, or even getting a foot on the lowest rung, seems all the more challenging. That includes those in a reasonably strong financial situation.
For contractors and self-employed workers, however, this is a bigger mountain to climb because those receiving inconsistent income or working for themselves have had it hard over the past year. In fact, between 30 November and 31 December 2020, HM Revenue & Customs (HMRC) received 1.9 million claims for the government’s Self-Employment Income Support Scheme. That’s out of a possible 3.4 million eligible applications, with claims totalling £5.4bn — the average being £2,800 per individual.
There’s no denying that independent workers have struggled during the pandemic and, if you’re a broker who regularly deals with complex income cases, this may not be news to you.
Specialist help still in demand
Despite the challenges that those with complex income have faced, there are still many individuals working for themselves, and the need for specialist lenders to support these prospective buyers remains vital.
Let’s not forget brokers too, who play a key role in supporting applicants with inconsistent or unconventional income. Buyers with varied income will go to a broker first, aware that their situation needs expert help. They’ll depend on a broker’s understanding of the market as perhaps their best chance of being approved for a loan.
Knowing where to turn can seem daunting for brokers at times, but it all comes down to having good relationships with experienced lenders and knowing how well positioned each lender is to support a client’s circumstances — however challenging or straightforward they may be.
Solutions for complex income
In these situations, Kent Reliance for Intermediaries understands the importance of not having a one-size-fits-all approach. Our flexibility and willingness to lend provides opportunities for clients struggling to get a loan due to their financial situation. We view each case in detail to see the full story, and work personally with brokers to find the best solution.
We accept individuals who have been self-employed for a minimum of 12 months, provided proof of income is supplied. This should be based on the finalised accounts, the accountant’s reference or any tax calculations submitted to HMRC.
We consider applications from contractors, as long as they can prove at least one contract renewal, with a minimum of 12 months of sector experience. We can also accept those on a PAYE contract basis, provided their contract has been renewed at least once, with at least six months to run. Importantly, there’s no minimum income requirement for them.
Get in touch
Our national team of business development managers have the knowledge and experience to deal with cases that aren’t straightforward. We also have a broker liaison team, available via Live Chat on our website or on 01634 888260, to answer queries.
Read the full Complex Client’s Supplement here
FOR INTERMEDIARIES ONLY
