"Lenders are unable to borrow on equity and can only consider if you can afford this mortgage based on your income. "
Whilst this is technically true, it is a bit like saying "Cars are unable to drive on private roads at over 70mph" - technically true, but a quick trip to any motorway or a road will tell a different story.
There are plenty (and I mean plenty) of companies who don't care what your repayments are like so long as there is adequate security -whether they admit it or not.
As for the "its hassle" response from loosehead - well - on the basis that if you don't pay, they are only lending you �60k against something which they will be able to sell for at very worst case scenario �120k, it is very much worth the hassle!
Go to a mortgage broker who will know the best place to put the business