£750,000 Mortgage Approved for a Self-Employed Business Owner

Self-employed applicants often find that a strong, successful business still isn't enough on its own, it's how that income is assessed that makes the difference.

The Challenge

Our client ran a thriving business, but like many companies, profits had varied significantly year to year. Most lenders average income across two or three years' accounts, which would have understated what the business was actually generating now and reduced the amount they could borrow.

The Solution

We sourced a lender prepared to assess affordability using only the client's latest year's net profit, rather than an average across previous, weaker years. This meant the mortgage could be based on the true current strength of the business rather than a blended figure that no longer reflected reality.

"Fluctuating accounts put off a lot of mainstream lenders, but it doesn't mean the affordability isn't there," said Marcus, Senior Mortgage Adviser at The Mortgage Centre. "We knew which lenders would look at the latest figures on their own merits, and that made all the difference to the amount our client could borrow."

The Outcome

The client secured a £750,000 mortgage based on their most recent year's performance, comfortably supporting the purchase they wanted without being held back by earlier, quieter years.