High loan to value mortgage for recently self-employed client


Self-employment is on the rise. Last year, a government study showed self-employment in the UK increased by 800,000 in the years between 2008 and 2015. This can be a lucrative path, and we at Enness regularly work with very successful self-employed clients from across a range of industries.

However, when it comes to securing a mortgage, self-employed clients are much more likely to struggle. Most lenders will typically ask for a minimum of two to three years’ accounts, evidence of tax calculations and tax overviews. Even for self-employed clients who are earning more than when they were an employee, a lack of long-term financial history may be off-putting for lenders.

I recently encountered this issue. Newly married with no children, my client and his wife—who worked in construction management—were looking for a high loan to value mortgage for a large family home.

Both husband and wife owned properties individually, but now wanted to buy together. My clients had identified a beautiful end-of-terrace Georgian property in charming town of Leamington Spa, in the Midlands.

There were two primary issues; the property was valued at £750,000 and my clients were looking to borrow £630,000. This high loan to value (LTV) of 84%, and the fact their borrowing would be over £500,000, meant most lenders would apply an income multiple cap of four times the couple’s joint income, which was insufficient to support this level of borrowing due to him becoming self-employed.

Furthermore, the husband had only been trading as self-employed for the last two years, and was in the process of submitting his second year’s accounts. As mentioned, most lenders would require more evidence than this.


Fortunately, our access to the whole of market means we know which lenders can be flexible on issues such as the above. I therefore placed this with a lender who was prepared to work from an accountant’s certificate to evidence the two years’ worth of net profits. They were also happy to work from his latest figures. The final product secured was a 2 year tracker at 1.59%, over a 35-year term.

If you are recently self-employed and are struggling to secure a mortgage, I would be very happy to talk with you further to discuss your options.