I was recently approached by a very distressed couple who wanted me to help with an £825k prime central London residential purchase with only one year’s company accounts.
My clients explained they wanted to buy this highly sought after property with a high loan to value (LTV), and secure a mortgage of £620k. They had spoken to various high street lenders and numerous mortgage brokers, all of whom reported they could not provide them with a loan as they could only take the husband’s income into account.
The husband was employed full-time with payslips and a strong wage, meaning there was no question as to what income he would be earning in months to come. His wife in this scenario however, was a self-employed professional and the main breadwinner of the relationship. It was imperative that her income be considered alongside her husbands for them to make the purchase and satisfy any concern over affordability.
Not only was there risk associated with the fluctuating income of my self-employed client, but she also had only one year’s accounts. Lenders are very wary of this, and will typically only consider cases where a client has three to four years’ worth of accounts.
Although this proved difficult, I managed to negotiate a great rate with a lender whom I have strong influence and relationship with. They accepted my female client’s one year’s accounts, however I gave the account strength by providing details of when she had been previously employed full-time in the same line of work. With this evidence, I could show projected figures which served to satisfy the lender that her income was going to stay very similar.
I secured a fantastic 1.79%, 2-year fixed rate for my happy clients, which was very good for such a high LTV and mortgage over £500k.