Arranging a mortgage for self-employed clients always poses more of a challenge, but this is particularly true when a client has not been self-employed for very long. I was recently approached by a client who had been self-employed for a year.
My client was a 32-year-old management consultant working with an energy trader. He had been employed by them before, but was now operating in a limited liability partnership (LLP).
He was looking for a large mortgage with a high loan to value (LTV), and understood that there are not many lenders who can accommodate for his situation and request. He therefore approached Enness because he felt that our extensive lender network and market knowledge would enable us to find a solution for him.
My client was a first-time buyer looking to finance a residential property; he had found a flat in Southwark, London, valued at £1.25million. He was looking for a LTV of 85-90%, which is difficult with loans over £1million.
I approached a lender that I know are prepared to take a holistic view of a client’s situation, and highlighted to them that my client was a good candidate despite being outside of their usual criteria. Despite having limited self-employment history, I emphasised my client’s experience and the similarity of his current role to his previous work.
I also highlighted that my client received fixed profit shares, which would be a sure form of income and reassured the lender when assessing affordability. I managed to secure my client a 5-year fixed rate of 2.24% at 85% LTV, which is a very competitive rate.
My client was very pleased with this outcome, and this case illustrates how Enness can secure a mortgage for self-employed clients even if they don’t have a long history of being self-employed.