In This Article
What is a complex mortgage?
A complex mortgage considered to be a mortgage that is more difficult to arrange due to factors in the background that make the situation more of a challenge in getting the mortgage through.
For example, this could be for reasons such as complicated income, adverse credit, non-traditional properties or people’s residency statuses.
Just because the mortgage is complex, it does not mean that it is not possible to arrange.
A skilled mortgage broker would be able to assess the complex mortgage scenario and match it with a suitable lender.
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What would be considered complicated income when talking about complex mortgages?
Complicated income could be a range of things. For example, if you are self-employed but do not draw all of your income out of your company instead choosing to retain your profits, some lenders will not be able to lend based on the profit of the company.
This can mean getting a mortgage can be more difficult.
Some lenders will only work off your salary and dividends that you have received from your limited company within the financial year.
Fortunately, there are also lenders that are willing to lend based on the company profits.
An experienced mortgage adviser would know which lenders to approach when you do not draw all of your profit out of the company but need a higher loan amount than that offered by a salary and dividend lender.
Again, not all lenders will accept this type of which may result not being able to buy the property that you like.
Some lenders are better than others when it comes to this type of income. As a result, finding an experienced mortgage adviser that can match you with a suitable lender for your scenario is always best.
What is considered adverse credit when talking about complex mortgages?
Lenders that offer complex mortgages do not all accept adverse credit. The ones that do need to know more details of the bad credit as some will have certain thresholds that may stop them lending.
For instance, lenders want to know how much for the adverse credit was for, when did it occur, who were the creditors, what type of finance was it for and has it now been settled.
Your mortgage broker will be able to look through your credit file to assess the details of the adverse credit matching you with lender that can accept the credit issues.
To find out more about your credit file you can go to Check My File.
What do non-traditional properties consist of when people talk about complex mortgages?
The standard build for a house in the UK is brick and tile but not all houses are built using this method.
There are other build methods accepted by most lenders without issues such as stone walls and slate tiles.
There are also build methods which are a bit harder to place when it comes to a mortgage due to some lenders not accepting these methods.
An example of this is concrete houses. Some lenders will not accept concrete houses and the ones that do will need more details, such as the exact scheme (for example, wimpy no fines) and will need a surveyor to confirm the property meets the lender’s criteria.
Another example of a non-traditional build method is a wooden framed property, again not all lenders will accept this type of property.
Thatched roof properties and houses that have been subject to subsidence are also limited to certain lenders.
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Do I need a complex mortgage broker change a complex mortgage?
You do not necessarily need a complex mortgage broker to arrange complex mortgages as there are mortgage advisers who know both the complex and non-complex market.
It is, however, important to look for a mortgage broker that has experience in the area that you need help with.
For instance, if you have adverse credit and are looking for a buy to let mortgage, there will be mortgage advisers that have more experience in this area than some other advisers.
Many mortgage advisers stick to a small area of expertise rather than try to specialise in every subject.
When talking to a mortgage adviser, you should ask their experience in transactions such as yours to check whether they have seen your situation before.
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Do you get complex buy to let mortgages?
You certainly get buy to let mortgages with situations that are more difficult than your average.
For example, a concessionary purchase on a buy to let property may be considered more complex than a standard transaction.
This is where the purchaser buys the property but the equity within it is gifted down by the vendor.
Not every lender will accept this so it’s important to find a mortgage adviser that is able to match the situation with the correct lender.
There could be many reasons that a buy-to-let mortgage may be complex. Other reasons include adverse credit, the type of tenants that are in the property, regulated buy to let mortgages, houses of multiple occupation and limited company buy to let mortgages.
Again, this is where finding an experienced mortgage adviser can be worth their weight in gold.
A skilled mortgage adviser can assess a complex situation and look for a mortgage lender accordingly.
Are interest rates higher on complex mortgages?
Interest rates are not necessarily higher for complex mortgages than what they would be for a simpler mortgage scenario.
This does depend though, as your complex mortgage situation may mean that you need to use a specialist mortgage lender.
For instance, if you have adverse credit or if you need to use a mortgage lender that can offer higher income multiples or 1 year’s accounts for self-employed people, this may mean a specialist lender is needed.
Specialist lenders generally charge a higher rate of interest than High Street lenders.
You may not always need a specialist lender though, so find an experienced mortgage adviser that can give you the individual advice that you require.
Are commercial mortgages considered complex mortgages?
A good commercial mortgage adviser will have lots of knowledge on how businesses run, how lenders assess the business is accounts and what commercial mortgage lenders look for when assessing an individual for a commercial mortgage.
Some residential mortgage advisers do not offer advice on commercial mortgages at all as they are considered specialist by many brokers.
You also get mortgage advisers that only give advice on commercial mortgages.
For a commercial mortgage adviser, check whether they are members of The National Association of Commercial Finance Brokers (NACFB).
If you would like to match with a commercial mortgage broker, please complete the contact form.
Are bridging loans considered complex mortgages?
As the bridging market is large, it is hard to be an expert in every area.
If you need a bridging loan, you should look for an experienced bridging adviser who has arranged transactions in situations like yours.
For example, some bridging loan brokers will specialise in auction purchases where some others may stick to Commercial bridging.
Bridging finance is expensive so make sure you find a competent adviser can give you suitable mortgage advice for this subject.
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Just because your situation is complex, it does not always mean that you cannot get a mortgage.
There are many lenders in the market so where one lender does not have an appetite for a situation, another lender may.
If you are looking for a mortgage, you should always take professional advice.
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