Self employed remortgage to capital raise despite low earned income

A self-employed client recently contacted me with the need to remortgage her residential property, in order to raise capital for home improvements. This client was a childminder and owned the property in which she conducted her childminding business from. She had a first charge mortgage with a high street bank and a second charge with a different lender, which was initially obtained to pay for her loft conversion.

Despite this, my client’s funds for the loft conversion ended up running low much sooner than expected, which is why she required the remortgage to raise the additional finance needed to complete the works. However, my client’s situation was a little complex and came with a few additional challenges.

My client had a couple of children, one of which was disabled and very dependent on her. Because of this, her benefits income was actually higher than her self-employment income but the majority of lenders would not consider her overall income, just her business earnings. This would certainly be a problem for a mainstream lender.

However, more often than not, the key to securing the right mortgage is knowing how to present the case to a lender in the right way, so I knew I would be able to find the right solution.

As my client’s occupation was very much in demand, a lender was willing to take a look at the case. The fact that her child would become less reliant on her at a later date, allowing her to earn more, also worked in her favour.

The lender was consequently happy to take 100% of her benefits income into consideration and use it to calculate affordability instead. This meant my client was able to capital raise enough to put towards the home improvements and save on monthly mortgage repayments at the same time.


My client borrowed £150,000 in total over a 20 year term. I was able to secure this on a very competitive 2 year fixed rate of 1.54%.

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