Many people assume that unusual income, imperfect credit or non-standard working arrangements will automatically prevent them from getting a mortgage. However, a complex application does not necessarily mean an impossible one.

The mortgage market includes lenders with different criteria and ways of assessing applications. Some also use manual underwriting, allowing them to consider the borrower’s wider circumstances rather than relying entirely on an automated decision.

Here are five common myths about complex mortgages:

1. Self-employed applicants always need two perfect years of accounts

Although many lenders request at least two years of trading figures, this is not a universal rule. Depending on the circumstances, some may consider applicants with a shorter trading history or fluctuating profits.

2. Having several sources of income makes an application too complicated

Income from employment, self-employment, contracts, bonuses, commission or other sources may still be considered. The important factors include how reliable the income is, how long it has been received and whether it can be clearly evidenced.

3. Unconventional assets always result in a refusal

Holding assets such as cryptocurrency does not necessarily mean an application will be declined. Lenders may ask additional questions about the source of funds and require appropriate evidence, particularly when assets contribute towards a deposit.

4. A long commute or unusual working pattern will prevent approval

Hybrid working, shift work and longer commutes are increasingly common. A lender may want to understand whether the arrangement is realistic and sustainable, but it does not automatically make the mortgage unacceptable.

5. Historic credit problems rule out a mortgage

A missed payment or previous credit issue can affect the options available, but it may not prevent someone from borrowing. Lenders can consider how serious the problem was, when it occurred and whether the applicant’s finances have since improved.

A rejection does not always mean the end

Being declined by one lender does not mean every lender will reach the same decision. Each has its own affordability calculations and lending criteria, so the application may simply have been presented to the wrong lender.

Repeated applications can leave further searches on a credit file, so it is sensible to understand the reason for a decline before applying elsewhere.

If your income, employment, credit history or circumstances do not fit the usual boxes, professional mortgage advice could help you understand which options may be available. Contact our team to discuss your circumstances before assuming that homeownership or remortgaging is out of reach