Handelsbanken
Handelsbanken Mortgages | Complex Income & Property Advice
Handelsbanken is a relationship-led bank offering residential mortgages and property finance with an emphasis on individual assessment rather than purely automated lending decisions.
At Kerr & Watson, we may consider Handelsbanken where an application involves complex income, substantial borrowing, unusual property, multiple sources of wealth or circumstances that need to be understood in more detail than a standard high-street mortgage application allows.
Its criteria can be particularly relevant for business owners, self-employed applicants, customers receiving bonuses or share-based income, people buying properties with acreage or additional buildings, and borrowers requiring a more bespoke mortgage structure.
Handelsbanken manually underwrites mortgage applications and provides brokers with direct access to decision-makers, allowing the complete circumstances of the borrower and property to be considered.
Could Handelsbanken be the right mortgage lender for you?
Handelsbanken can be particularly useful where your income, assets or property do not fit neatly within standard mortgage criteria.
At Kerr & Watson, we compare Handelsbanken with other suitable high-street, private and specialist lenders to establish which mortgage and lending approach are most appropriate for your circumstances.
Handelsbanken at a glance
| Handelsbanken | |
|---|---|
| Residential mortgages | Yes |
| Remortgages | Yes |
| Large mortgages | Yes |
| Maximum standard loan size | No stated maximum |
| Manual underwriting | Yes |
| Self-employed applicants | Yes |
| Limited company directors | Yes |
| Retained profits | Can be considered |
| Multiple income sources | Yes |
| Bonus income | Considered |
| RSUs / vested shares | Considered |
| Investment income/assets | Considered |
| Rental income | Considered |
| Pension income | Considered |
| Foreign currency income | Considered |
| Joint Borrower Sole Proprietor | Can be considered |
| Sole Borrower Joint Proprietor | Can be considered |
| Interest-only mortgages | Yes, subject to repayment strategy |
| Offset mortgages | Yes |
| Buy-to-let / property portfolios | Considered |
| Unusual properties | A particular strength |
| Large acreage | Considered |
| Listed buildings | Considered |
| Residential property with holiday lets | Can be considered |
| Mixed-use property | Considered |
| Self-build / residential development | Considered |
| Commercial property finance | Yes |
Mortgage criteria and products can change, and Handelsbanken assesses applications individually.
Who are Handelsbanken?
Handelsbanken is a relationship-led bank with a UK branch network and a lending model based around local decision-making.
Rather than relying entirely on centralised automated underwriting, Handelsbanken states that all intermediary mortgage cases are manually underwritten.
A local team can therefore look at the complete application, including:
- Income.
- Assets.
- Business ownership.
- Existing borrowing.
- Property.
- Repayment strategy.
- Wider financial circumstances.
This can make Handelsbanken worth considering where the strongest parts of an application cannot easily be captured by a conventional automated affordability model.
What makes Handelsbanken different from a standard mortgage lender?
Many mainstream lenders use tightly defined rules for income and property.
That works well for straightforward applications but can become restrictive where someone has:
- Several income sources.
- A successful business but relatively modest personal drawings.
- Significant investments.
- Share-based remuneration.
- Foreign income.
- An unusual or high-value property.
- Several buildings on one title.
- Residential and business use within the same property.
Handelsbanken’s manually underwritten approach means these circumstances can be discussed and assessed together rather than every part of the case needing to fit a predetermined box.
That does not mean Handelsbanken has no lending criteria.
The lender still needs to be satisfied that the mortgage is affordable, sustainable and appropriately secured.
Handelsbanken mortgages for complex income
Complex income is one of the areas where Handelsbanken can be particularly useful.
The lender can consider income beyond straightforward PAYE salary, including sources such as:
- Self-employed income.
- Company profits.
- Rental income.
- Bonuses.
- RSUs and vested shares.
- Pensions.
- Investment income.
- Trust income.
- Foreign currency income.
Each income source needs to be evidenced and assessed for sustainability.
This can be valuable for applicants whose overall financial position is strong but whose income would be reduced significantly under a lender using a more rigid calculation.
Handelsbanken mortgages for self-employed applicants
Handelsbanken considers applications from:
- Sole traders.
- Partnerships.
- Limited company directors.
Rather than looking only at the amount withdrawn personally from a business, Handelsbanken can consider the wider financial position of the company where appropriate.
This can include retained profits.
For example, a profitable company director may choose to take a relatively modest salary and dividends while leaving substantial profits within the business.
Some lenders will base affordability almost entirely on the amount actually withdrawn.
A manually underwritten lender may be able to understand why profit is retained and consider the strength of the underlying business alongside the applicant’s personal income.
Limited company directors and retained profits
Retained profit can be particularly important for established business owners.
There are many reasons a director may leave money within a business, including:
- Funding future growth.
- Maintaining working capital.
- Building cash reserves.
- Purchasing equipment.
- Managing tax and dividend planning.
This can mean the applicant’s salary and dividends do not accurately represent the economic benefit generated by the business.
Handelsbanken specifically identifies retained profits as an area it can consider when assessing mortgage affordability.
We would normally review the company accounts and the applicant’s personal income before determining whether Handelsbanken or another lender provides the most appropriate assessment.
Handelsbanken and multiple income streams
An applicant may receive income from several different sources rather than one employer.
Examples might include:
- Salary.
- Company income.
- Rental property.
- Investments.
- Pensions.
- Bonuses.
- Trust distributions.
Handelsbanken can assess multiple income streams together.
This can be particularly relevant for higher-net-worth applicants, company directors and people whose financial circumstances have become more complicated over time.
The key requirement is that income used for affordability can be appropriately evidenced.
Bonus income
Handelsbanken can consider regular bonus income as part of mortgage affordability.
The amount used will depend on the history and reliability of the bonus.
A contractual bonus with a strong history may therefore be assessed differently from a discretionary payment received for the first time.
Rather than simply stating that all bonus income is acceptable, we establish:
- How long bonuses have been received.
- Whether they are contractual or discretionary.
- Whether the amount varies.
- Whether employment has changed.
- Whether the income is likely to continue.
This helps us establish how much of the bonus Handelsbanken is likely to use.
RSUs and vested shares
Restricted Stock Units, commonly known as RSUs, and vested company shares are increasingly common forms of remuneration, particularly within technology and larger international businesses.
Not every lender includes this income within mortgage affordability.
Handelsbanken can consider RSUs and vested shares subject to its current evidence and sustainability requirements.
This can be particularly important where share-based remuneration forms a significant proportion of the applicant’s total compensation.
We would normally review the vesting history, employer and evidence of previous awards before relying on this income.
Investment income and assets
Handelsbanken can also consider investments when assessing the wider financial position.
This can include circumstances where someone holds substantial:
- Investment portfolios.
- Stocks and shares.
- Pension assets.
- Cash investments.
- Other financial assets.
Where income is already being drawn, it may be possible to use that income directly.
For some high-net-worth customers, Handelsbanken can also consider the underlying value of investments where income has not historically been drawn, subject to individual assessment.
This is another example of where the lender’s approach can differ from a straightforward salary-based mortgage calculation.
Handelsbanken and rental income
Rental income can also form part of the affordability assessment.
This can be relevant to applicants who already own:
- Buy-to-let properties.
- Holiday lets.
- Residential investment property.
- Other income-producing property.
Handelsbanken considers the taxable profit generated rather than simply assuming the full gross rent is available to support a residential mortgage.
Existing mortgage commitments and other property costs also need to be considered.
Foreign currency income
Handelsbanken can consider certain income and assets denominated in foreign currencies.
This may be useful for applicants who:
- Work for an overseas employer.
- Receive part of their remuneration internationally.
- Hold overseas investments.
- Receive foreign rental income.
- Have income paid in another currency.
Foreign currency income introduces exchange-rate risk, so Handelsbanken applies an adjustment when assessing it for affordability.
The currency and source of income therefore need to be established before relying on it.
Handelsbanken large mortgages
Handelsbanken does not publish a standard maximum mortgage loan size for its intermediary proposition.
This can make it relevant for large mortgage applications where the required borrowing exceeds the standard loan limits of some mainstream lenders.
Large mortgages are normally assessed using the complete financial position rather than simply applying a headline income multiple.
The lender may consider:
- Income.
- Assets.
- Business interests.
- Deposit or equity.
- Other property.
- Existing borrowing.
- Mortgage repayment method.
- The security property.
A borrower requiring a large mortgage does not automatically need a private or specialist lender, so we would still compare Handelsbanken against mainstream and other relationship-led banks.
Handelsbanken and unusual properties
Property criteria are another area where Handelsbanken can be particularly useful.
Its current intermediary information specifically highlights its ability to consider unusual properties, including:
- Listed buildings.
- Holiday homes.
- Properties with large acreage.
- Unusual construction.
- Mixed-use property.
Our Mortgage Bible also records a broader appetite for properties including:
- Residential homes with letting annexes.
- Agricultural ties.
- Forestry rights.
- Working farms.
- Care homes where the owner lives on site.
- Kennels and catteries.
- Caravan parks where the owner lives on site.
- Converted farm buildings.
- Residential properties with holiday lets on the same freehold.
These cases normally need individual discussion rather than being submitted through a standard property checklist.
Properties with acreage
Large plots of land can cause difficulties with mainstream residential mortgage lenders.
A lender may want to understand:
- How much land is included.
- Whether it is agricultural.
- Whether the land is used commercially.
- Whether there are separate titles.
- Whether there are outbuildings.
- Whether agricultural restrictions apply.
- Whether any income is generated from the land.
Handelsbanken can consider properties with substantial acreage on a case-by-case basis.
This can make it useful for larger country houses and rural properties that fall outside conventional residential criteria.
Properties with annexes
Handelsbanken can also consider residential properties containing annexes or additional accommodation.
An annexe can become more complicated where it is:
- Fully self-contained.
- Separately accessed.
- Let to another person.
- Used as a holiday let.
- Capable of being sold separately.
Some mortgage lenders will only accept an annexe where it is occupied by a family member and forms clearly part of the main home.
Handelsbanken can consider wider arrangements where the complete property and intended use remain acceptable.
Residential mortgages with holiday lets on site
One particularly distinctive scenario is a main residential home that also includes holiday-let accommodation.
Many mainstream residential lenders are uncomfortable where several income-generating units sit on the same title as the applicant’s home.
At the same time, a commercial mortgage may not necessarily be appropriate where the primary purpose of the property remains residential occupation by the borrower.
Handelsbanken can consider these cases individually.
This is an area where Kerr & Watson has direct experience using Handelsbanken.
Our experience with Handelsbanken
One example were we have used Handelsbanken for a residential mortgage was where the property and intended use fell outside the appetite of many conventional residential lenders.
£1.1 million family home with four holiday lets on the same title
We helped a family relocating to Devon purchase a £1.1 million property consisting of a five-bedroom main house and four separate holiday barns on the same title.
The family planned to live in the main house while letting the barns through Airbnb, with expected holiday-let income of around £80,000 a year.
The difficulty was that many residential lenders were uncomfortable with five separate dwellings and significant holiday-let activity on one title.
At the same time, the customers wanted the property financed as their residential home rather than using a commercial mortgage.
Their earned income was sufficient to support the required mortgage without relying on the projected holiday-let income.
We approached Handelsbanken and presented the complete circumstances, including the customers’ income, their intention to occupy the main house and the secondary use of the barns.
Handelsbanken was able to take an individual view of the property and agreed a 30-year residential repayment mortgage.
Handelsbanken holiday-let property case study
Why this Handelsbanken case was significant
The case demonstrates why lender selection is about more than finding a mortgage rate.
The applicants had sufficient income to support the borrowing.
The issue was the property rather than the customers’ affordability.
A standard automated approach could easily have resulted in the application being rejected because the property contained several self-contained holiday units.
By discussing the complete case with a lender comfortable with unusual properties, we were able to establish whether the property could still be treated as suitable residential security.
This is exactly the type of scenario where Handelsbanken’s manual underwriting can be valuable.
Listed buildings
Handelsbanken can also consider Grade I and Grade II listed properties.
Listed buildings can sometimes require more specialist mortgage underwriting because alterations, maintenance and repair may be subject to additional restrictions.
The lender still needs to be satisfied that the property:
- Is structurally sound.
- Provides suitable security.
- Has an appropriate market.
- Can be adequately insured.
The listing itself does not automatically prevent Handelsbanken considering the property.
Properties with business use
Handelsbanken can consider residential properties that include an element of business use.
The lender will need to understand:
- What business operates from the property.
- How much of the property is used commercially.
- Whether customers or employees attend the premises.
- Whether planning permission is required.
- Whether the business changes the property’s residential character.
A home office used by a company director is very different from a property containing extensive commercial premises.
Handelsbanken’s ability to assess unusual or mixed-use properties individually can therefore be important.
Handelsbanken mortgages for working farms and rural businesses
Your circumstances can become particularly complicated where your home and business operate from the same property.
Our Mortgage Bible records Handelsbanken as able to consider examples including working farms where farm income supports borrowing secured against the property.
This can involve assessing both:
- The residential property.
- The underlying business.
These cases generally require considerably more information than a conventional residential mortgage.
Agricultural ties and forestry rights
Handelsbanken can also consider some properties affected by agricultural ties or forestry rights.
An agricultural occupancy condition can restrict who is permitted to live in the property.
That restriction can reduce the number of potential future purchasers and therefore affect mortgageability.
Whether a property is acceptable will depend on the precise wording of the restriction and the valuer’s assessment.
These cases should normally be checked with the lender before a full application is made.
Joint Borrower Sole Proprietor mortgages
Our Mortgage Bible records Handelsbanken as able to consider Joint Borrower Sole Proprietor arrangements.
A JBSP mortgage allows someone to join the mortgage and support affordability without necessarily being registered as a legal owner of the property.
This can be useful where:
- Parents support an adult child.
- Family income is needed for affordability.
- Ownership needs to remain with one borrower.
The supporting borrower remains jointly responsible for the mortgage debt even though they may have no ownership interest in the property.
Independent legal advice may therefore be appropriate.
Sole Borrower Joint Proprietor
Handelsbanken can also consider the opposite arrangement: Sole Borrower Joint Proprietor.
This is less common.
It means more than one person may have an ownership interest in the property even though only one person is responsible for the mortgage.
These arrangements require careful legal consideration and will only be appropriate in specific circumstances.
Handelsbanken interest-only mortgages
Handelsbanken can offer interest-only mortgages subject to affordability and an acceptable repayment strategy.
With an interest-only mortgage, the monthly payment normally covers the interest rather than reducing the original capital balance.
The borrower therefore needs a credible way of repaying the mortgage at the end of the term.
Possible repayment strategies might involve:
- Investments.
- Other property.
- Savings.
- Pension assets.
- Other acceptable investments or assets.
The proposed strategy will need to be appropriate for the mortgage amount and customer.
Handelsbanken offset mortgages
Offset mortgages are another distinctive part of Handelsbanken’s residential proposition.
An offset mortgage links qualifying savings to the mortgage.
Instead of earning interest on those savings, the balance is used to reduce the mortgage amount on which interest is charged.
For example:
A customer has a mortgage of £500,000 and maintains £100,000 in qualifying offset savings.
Mortgage interest would generally be calculated against the difference rather than the full £500,000.
The savings remain accessible rather than being permanently used to reduce the mortgage.
Who might benefit from an offset mortgage?
Offsetting can be particularly useful for people who maintain significant cash reserves.
Examples can include:
- Business owners.
- Higher earners with large bonuses.
- Customers retaining emergency funds.
- People expecting irregular large payments.
- Customers who do not want to permanently use their savings to reduce the mortgage.
Whether offsetting is financially worthwhile depends on the mortgage rate, savings balance, alternative savings returns and the customer’s need for access to the money.
We therefore compare the overall cost rather than assuming an offset mortgage will automatically be preferable.
Multiple Handelsbanken accounts can be offset
Your Mortgage Bible records that Handelsbanken can link multiple nominated Handelsbanken deposit or current accounts to its offset mortgage.
This can be useful where funds are spread across several accounts rather than held in one savings account.
The current product terms should always be checked before relying on a specific number of linked accounts.
Handelsbanken residential development and self-build mortgages
Handelsbanken can also consider residential development and self-build projects.
Your Mortgage Bible records that customers may be considered where they:
- Already own the land.
- Have appropriate planning permission.
- Have sufficient funds available to begin the project.
Rather than releasing the entire mortgage at the start, funds can be released in stages as construction progresses.
Once the property is completed, it may be possible to move onto a conventional residential mortgage, subject to the lender’s requirements at that time.
Appropriate warranties, guarantees and building-control documentation will normally be required.
Handelsbanken buy-to-let and property investment
Handelsbanken also provides property finance for landlords and investors.
Its commercial intermediary proposition specifically includes residential buy-to-let portfolios and broader property-investment lending.
The lender’s relationship-led approach can be particularly useful where an investor has:
- Several properties.
- Significant wider assets.
- Multiple income streams.
- Mixed property types.
- A more complicated borrowing requirement.
Buy-to-let cases still need to demonstrate appropriate affordability and property security.
Where a straightforward specialist BTL lender offers a better overall solution, we would not recommend Handelsbanken simply because the case could fit.
Handelsbanken commercial mortgages
Handelsbanken also provides commercial mortgages and property finance through its commercial banking proposition.
This can include:
- Owner-occupied commercial property.
- Residential investment portfolios.
- Commercial investment portfolios.
- Mixed property portfolios.
- Agricultural estates.
- Bespoke asset portfolios.
Commercial lending is assessed differently from a normal residential mortgage.
For owner-occupied commercial property, the lender may focus heavily on the strength and cash flow of the trading business.
For an investment property, rental income, tenants, leases and the underlying property become particularly important.
When might Handelsbanken not be the right lender?
Handelsbanken’s flexibility does not mean it should be used for every complicated mortgage.
Another lender may be more appropriate where:
- Your circumstances fit straightforward mainstream criteria.
- A conventional lender offers a materially lower overall cost.
- Your income cannot be adequately evidenced.
- The proposed mortgage does not pass affordability.
- The property does not provide suitable mortgage security.
- The required ownership or repayment structure is not acceptable.
- Another specialist lender has criteria specifically designed for the scenario.
- You prefer a highly automated lender rather than a relationship-led banking model.
For an uncomplicated mortgage application, a mainstream lender may provide a perfectly suitable solution.
Handelsbanken tends to become most relevant when there is a genuine reason why individual underwriting adds value.
What we check before recommending Handelsbanken
Before recommending Handelsbanken, we look at the complete application.
For income, that can include:
- Salary.
- Bonuses.
- Self-employed income.
- Company profits.
- RSUs or vested shares.
- Investments.
- Pension income.
- Rental income.
- Trust income.
- Foreign income.
For the property, we may consider:
- Value.
- Construction.
- Acreage.
- Additional buildings.
- Annexes.
- Holiday lets.
- Commercial use.
- Planning.
- Title.
- Agricultural restrictions.
- Future marketability.
We then compare Handelsbanken against other suitable lenders to establish whether its flexibility actually provides an advantage for the particular case.
Do you have to use Handelsbanken?
No.
Kerr & Watson is an independent, whole-of-market mortgage brokerage, so we can compare Handelsbanken with mainstream banks, building societies, specialist lenders and other relationship-led banks.
Handelsbanken can be particularly useful where income or property requires individual consideration.
However, another lender may provide more suitable affordability, criteria, mortgage structure or overall cost.
Our role is to identify which lender and mortgage provide the most appropriate overall solution for your circumstances.
Handelsbanken Mortgage Case Studies
We have helped customers secure mortgages with Handelsbanken in a range of circumstances, including cases involving more complex properties and non-standard income or property arrangements.
The case studies below show real examples of customers we have helped and demonstrate how factors such as property type, income, overall financial position and lender criteria can affect the mortgage options available.
Speak to a mortgage adviser about Handelsbanken
If your income, property or borrowing requirements do not fit neatly within standard mortgage criteria, we can review your circumstances before approaching a lender.
We can assess your income, assets, business interests, property and required mortgage before comparing Handelsbanken with other suitable lenders.
Lender criteria, affordability calculations, product availability and lending terms can change. The information on this page is intended as a general guide and should not be relied upon as confirmation that a lender will accept a particular application or that a particular mortgage or finance product will be suitable for you.
The information on this page does not constitute personalised mortgage advice or a recommendation. The regulatory status of a mortgage or loan depends on the type of transaction and your circumstances. Many buy-to-let and commercial mortgages, and some bridging loans, are not regulated by the Financial Conduct Authority. Your home or other property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
Your Mortgage In 3 Easy Steps…
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Schedule a call to speak to a mortgage adviser about your circumstances, borrowing requirements and property plans.
Alternatively give us a call on 01252 224620 or email us on info@kerrandwatson.co.uk.
Research
We will use the information you’ve provided to research suitable mortgage options across the market and explain our recommendation to you.
If you need an Agreement in Principle, we can also arrange this as part of the process.
Application
Once you’re ready to proceed, we will submit the full mortgage application and supporting documents to the lender.
We will liaise with the lender and its underwriters, respond to any additional requirements and keep you updated until the mortgage offer is issued and through to completion.
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