Mortgages for self employed
Posted on 30th May 2024 at 12:13
Case Study - what we can do for our self employed Clients ...
2 self employed applications looking to downsize from their current property.
Applicant 1 had been self employed for 20 years
Applicant 2 had been a mixture of employed and self employed for the past 20 years. Since Covid, their income had predominantly been made up of employed income however they took the decision to be solely self employed in January 2023. However, most lenders want a minimum of 1 years accounts therefore they could not use any of her income for the affordability calculation and the mortgage was not affordable on just applicant 1’s income. ..............We therefore had to think outside the box.
I approached a building society that supports self employed clients and manually underwrite cases to discuss this scenario to see if there was anything they could do. They were happy to proceed on the basis that we could provide a projection of what Applicant 2 would end 2024 tax year on as well as supplying 12 months worth of bank statements to show the self employed income being deposited.
Mortgage offer was subsequently issued (after a lot of back and forth with underwrioters, managers and decision makers) allowing my clients to finally move into their dream home.
At HD Consultants we always pick up the phone to speak to lenders before submitting any cases.
Our lender partners work with us to try and get our complex cases over the line. In this instance, had we just used the numbers provided, all lenders would have declined.
Working with the lender meant they understood how the clients were paid and therefore were happy to proceed.
If you want to know how much you could borrow, contact me, Victoria, on 01206 577266
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