A complex income stream rather than the standard PAYE is becoming the norm, with clients receiving their income from various sources. Our client wanted to borrow £1.25m to repay some existing debt, carry out some home improvements and develop the land they owned near their home.
The main challenge was the client’s income came from several different sources, including rental properties and investments. The income profile and value did not warrant the loan size required for most mainstream lenders.
We reviewed the client’s assets in detail to find if we could structure a deal with their existing lender with whom they’ve had a relationship for many years, finding an alternative solution to enable them to borrow the money.
The solution we sourced to satisfy the affordability was for the client to put down five years’ worth of interest cover in an account with the lender, which would service the debt. We structured the deal by providing evidence of their assets, pension pot investment and extensive property portfolio. The structure secured allowed for the income they earnt not to be looked at in detail for affordability purposes.
If you have a complex income stream or irregular income which may not necessarily meet lenders’ standard affordability profiles, speak to us today to see how we can help find alternative solutions to achieve your desired outcome.