Insight and events

The COVID-19 pandemic has brought about many changes to our lives – from the way 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 £254,606¹, 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 becomes a bigger mountain to climb, as 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, HMRC received 1.9 million claims for the government’s Self-Employment Income Support Scheme (SEISS). That’s out of a possible 3.4 million eligible applications, with claims totalling £5.4 billion – the average being £2,800 per individual².

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 support remains in demand

Yet despite the challenges that those with complex income have faced, there’s still a large amount of individuals working for themselves, and the need for specialist lenders to support these prospective buyers remains vital.

Let’s not forget brokers too, who also play an important role when it comes to supporting applicants with inconsistent or unconventional income.

Buyers with varied income will go to a broker as their first port of call, aware that their situation needs the support of an expert. They’ll depend on a broker’s understanding of the market, knowing their support could be the 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 specific 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, which is especially important for clients with complex income. Our flexibility and willingness to lend provides opportunities for clients struggling to get a loan due to their financial situation. We look at each case in detail to view the full story, and work personally with brokers to find the best possible solution.

We accept individuals that have been self-employed for a minimum of 12 months, providing proof of income is supplied. This should be based on the finalised accounts, accountant’s reference or any tax calculations submitted to HMRC.

We can consider applications for contractors, as long as applicants can evidence at least one contract renewal, with a minimum of 12 months of sector experience. We can also accept those on a PAYE contract basis, providing their contract has been renewed at least once, with at least six months to run. Most importantly, there’s no minimum income requirement for contractors.

Our national team of business development managers also have the knowledge and experience to deal with cases that aren’t always straightforward. They’re more than happy to work with brokers to find solutions where others may struggle.

We also have a broker liaison team, who are available via Live Chat on our website, or on 01634 888260 to answer any case queries you have.

¹ https://www.mortgageintroducer.com/halifax-house-prices-at-record-high-as-momentum-increases-in-march/

² https://www.gov.uk/government/statistics/self-employment-income-support-scheme-statistics-january-2021/self-employment-income-support-scheme-statistics-january-2021#seiss-third-grant-claims-and-eligibility