In a survey of 680 mortgage brokers, 43% said that lenders’ tight credit scoring criteria for loans above £500,000 is a major stumbling block when sourcing a mortgage of this size.
The next biggest problem was self-employed clients, cited by 37% of brokers, while 35% said not enough lenders offer large loans and 26% said that lenders’ affordability calculations cause difficulties when they exclude clients’ bonuses or commission.
In addition, 22% of intermediaries said that having more than one source of income can cause problems for clients wanting a large loan.
Alex Hammond, PR, brand and communications manager at Kensington, says: “The circumstances of high earners are rarely simple. Many will be business owners and even where this is not the case, total income is often made up of commission, bonus or investments, meaning a one-size-fits-all approach does not suit these customers.
“At Kensington we do not rely on a credit score. Instead we underwrite individual applications on their own merit, which means we can consider customers whose circumstances would be too complex for other lenders.”