We were recently asked to arrange a loan for a client who required a high loan to value mortgage for self employed lawyer.
Our client had been made partner of his law firm which resulted in him moving from an employed to a self employed basis as far as lenders are concerned.
This scenario would have most lenders running for cover as common practice and criteria require a minimum track record of two years as self employed on which they base their income multiples.
The situation was further complicated by the fact that the client needed 80% LTV on a purchase of £1.15 million.
We presented the application to a lender who uses common sense rather than a computer to underwrite.
We showed that the client had been employed at the firm for many years and demonstrated his income. This, together with a copy of his contract and evidence via the firms accountant as to what a partner with a similar shareholding would have earned in the previous year was enough to get the case agreed.
We achieved 5 times income, the full 80% loan to value and a 5 year fixed under 4%.