Lenders should plan for complex incomes: Griffiths

Lenders should plan for complex incomes: Griffiths

Mortgage lenders need to do more to develop solutions for borrowers with complex incomes, the head of sales and distribution at intermediary-only mortgage lender Kensington Mortgages has said.

Steve Griffiths said more than one in eight employees are expecting bonuses in the next 12 months as consumer confidence continues to grow.

But he said that despite this lenders do not have the models to assess all forms of income.

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Mr Griffiths said: “Bonuses are widespread throughout the UK workplace and across industries, with 13 per cent expecting to receive them over the next year.

“Once you add the number of people who receive regular overtime, those who work as contractors and even those who have second jobs, it is clear that a significant number of potential mortgage customers have more complex income requirements that may require individual assessment.”

Adviser view

David Hollingworth, associate director of Bath-based mortgage broker London & Country, said: “Contractors and freelancers are all people who might find it harder on the high street.

“The market is competitive at the moment, so hopefully more lenders will look to accommodate this type of borrower.”