Making sense of complex income

Many borrowers don’t fit into the traditional 9 - 5 job. In fact, around 15% of the UK workforce are self-employed, and growing numbers rely on freelance income, multiple revenue streams or bonuses. Yet, 80% of self-employed borrowers still face challenges in securing a mortgage, often due to strict criteria or excessive documentation demands. As incomes become more diverse, brokers are playing a critical role in helping lenders keep pace.

At Saffron, we speak to brokers daily who are trying to place clients with reliable income sources, sensible outgoings, clear credit, but who fall outside traditional definitions of what makes an applicant “safe”. Whether it’s a contractor with varying monthly earnings; a client who has just qualified into a high-earning profession but hasn’t yet reached their full income potential; or a foster carer, whose income isn’t recognised at all by some lenders, the challenge is often less about risk and more about interpretation.

Despite these barriers, there’s a growing need for flexible underwriting and that’s where brokers add real value.

What brokers need from lenders now

Three themes come up repeatedly when we talk to intermediaries about supporting complex income borrowers:

1. Clarity on what counts. Too often, there’s a lack of transparency on which income sources are accepted and what evidence is required. Lenders can help by publishing clearer guidelines and offering direct BDM or underwriting support at the pre-application stage.
2. Simpler packaging. Self-employed clients often face a disproportionately high documentation burden, even when their income is stable. Where feasible, using SA302s or tax overviews in lieu of full accounts can save time and friction, without compromising risk.
3. Flexibility with purpose. The best outcomes often come from lenders who will assess a case on its own merits, not just what’s on paper. Bespoke underwriting, where available, gives brokers the ability to explain the full picture.
4. One way to strengthen complex income is applications is to include a short case summary at submission- a simple paragraph that explains the client’s income structure, reliability and overall affordability picture. This extra step helps underwriters make informed decisions, especially when they are dealing with complex income types.

A time for collaboration

This isn’t about lowering standards. It’s about refining them to reflect how people live, work and earn in today’s economy. And it’s not something lenders can do alone. Brokers are key to this evolution, not only in placing complex cases, but in shaping better policy through feedback.

As the conversation around affordability continues, let’s make sure we’re widening the lens, not just tightening the rules. Complex income deserves careful attention, not automatic exclusion. And with the right tools, guidance and open dialogue between lenders and brokers, we can help more clients achieve the home ownership outcomes they deserve.

For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.