Joint purchase of dream home with one year’s self-employed accounts

What was the situation?

I was contacted by a long standing client who was looking to move house. Their existing mortgage was with a major high street lender, and was fixed in for another 2 years so ideally the client wanted to port their mortgage to a new house. The new home was a joint purchase with the clients partner, who had sold their previously owned property in order to contribute to the deposit from the sale.

What was the issue?

Complexities arose in this case surrounding the client’s employment. Previously, they were a senior manager at an accountancy firm on a six-figure basic salary. However, since taking out their original mortgage product, they had left that role to set up their own business. The business itself had only been trading for 16 months, so only had one years’ accounts available to verify their updated income.

The loan amount required is comfortably within affordability assessment based on this one years income and their partners income combined, however their existing lender would not allow them to use this income for a porting application. This was because they require 2 years self-employed accounts for the business before they can take this into account.

What was the process?

Although the vast majority of lenders require two years accounts before they can take self-employed income into account, thanks to our reputation at working with and understanding self-employed client profiles and accounts, we have access to a few lenders that will consider one years accounts.

What was the solution?

We managed to get a lender with a market leading rate to consider this application, and as such the clients house move was back on! Although the client had to pay an early repayment penalty on their current mortgage, the new property was the couples dream home so they were delighted with this outcome.

Lending solutions with LDN Finance

Are you looking to purchase a new property but have a complex income structure? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our specialist brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.