Trust fund income mortgages available through Trinity Financial
Quick Summary
There are currently over 20 mortgage lenders, mainly smaller building societies or niche providers, offering Trust fund income mortgages. Many of them take different percentages of income for mortgage affordability purposes, depending on the trust, its conditions, and the amount declared to HMRC. There is one big bank offering trust fund mortgages, and it has competitively priced fixed and tracker rates.
Trinity Financial's brokers have arranged a host of mortgages for clients receiving income through a Trust.
Our experts have access to one leading high-street bank offering low rates with the ability to take up to 100% of trust income into account for affordability purposes. This is provided only when there is evidence of a regular, sustainable income over the mortgage term, which is typically 25 years but can be much shorter.
Evidence is required to show a regular income from this source, e.g. three months' bank statements; evidence of the source, e.g., a portfolio of stocks and shares. Also, a letter from a qualified accountant confirming income for the last six months. In addition to advising that there are no encumbrances and that the income covers the term of the proposed mortgage.
Aaron Strutt, product manager at Trinity Financial, says: “Proof must be in the form of three months' bank statements and evidence of the source to qualify for the cheapest rates, for example, a portfolio of stocks and shares. Wealthier clients will often be able to secure finance through one of the private banks."
How many high street lenders offer trust fund mortgages?
There are not many big banks that accept income from a trust, but some 20+ niche and smaller lenders issue trust fund mortgages. A few may accept up to 100% of the income when the recipient has SA302's and corresponding tax year overviews, also 100% of the income if it is guaranteed. Others may accept 50% of income from trust funds, provided it is supported by an accountant's statement.
Call Trinity Financial on 020 7016 0790 to secure a trust fund mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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