Navigating today’s complex income landscape

Straightforward, single-source incomes are no longer the norm. More borrowers now earn through a mix of self-employment, variable bonuses or additional revenue streams. But while working patterns have evolved, affordability models and lending criteria haven’t always kept pace.

For brokers, this creates increasing pressure. They’re supporting clients with reliable income that simply doesn’t fit the traditional definitions lenders have long used to identify a “safe” applicant. In a market where affordability remains under scrutiny, outdated approaches can make an already demanding process even more difficult. And with more professionals working internationally, or households combining income across generations, brokers need the flexibility to reflect how modern finances really work.

The key barriers facing brokers

Across the market, several themes consistently emerge in complex-income cases. Uncertainty remains a major issue. Ambiguity about which income sources are accepted, and what evidence is required, can derail cases unnecessarily. Brokers tell us that clearer, upfront guidance, supported by early conversations with BDMs or underwriters, can save time and prevent viable applications from being discounted too soon.

Documentation demands are another challenge. Self-employed borrowers, even those with stable earnings, often face significantly more paperwork than equivalent employed applicants. Streamlining requests where appropriate can reduce friction without compromising a lender’s understanding of risk. For example, using SA302s or tax overviews instead of full accounts.

Purposeful flexibility is equally important. Some cases can’t be judged on the numbers alone. Manual underwriting, where available, allows brokers to provide essential context: why a contractor’s fluctuating income is still consistent, or why a newly qualified professional is on a clear upward trajectory. When lenders look beyond the surface, outcomes are often fairer and more reflective of a client’s true circumstances.

Improving outcomes: what needs to happen

Supporting complex-income borrowers doesn’t mean relaxing standards; it means modernising criteria to reflect today’s working patterns. And that shift requires collaboration. Brokers play a central role, not only in navigating the most intricate cases but also in shaping more effective lending policy through their feedback.

At Saffron, we speak to brokers every day and hear first-hand where the pressure points lie. Their insights help us translate complex criteria into practical guidance. Early dialogue often makes the difference. When brokers understand from the outset how a case is likely to be assessed, they can package it more efficiently and avoid unnecessary delays for their clients.

As affordability remains high on the agenda, it’s time to think more broadly about what reliable income looks like. For many borrowers, complexity is the norm. With clearer guidance and a shared approach, brokers and lenders can deliver decisions that reflect modern working lives and help more clients move forward on their path to homeownership.

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.