Our clients approached us wanting to purchase a property worth £1.35 million for which reason they needed a self employed mortgage despite short trading history.
The clients jointly own a media agency in London which had been trading for 3 years but only recently started showing large profits, as is usual with start ups.
Most lenders base their income multiples on an average of the last 2-3 years trading figures. We approached a lender who would base the loan on the last year’s income and a projection for the current year backed up with management accounts. The clients could show a long track history in their sector and strong client bank to further support the application.
The Loan to Value was good and apart from the comparably short trading history there was nothing wrong with the case.
We therefore managed to achieved 1.89% over Base for 3 years with no early repayment charges.