Securing a mortgage for self-employed clients can be challenging, but I recently helped a first-time buyer, in the midst of her professional dancing career, to purchase her first residential property in London despite only having one year’s accounts.
My client had approached Enness after her financial advisor was unable to assist with her complex mortgage requirements. The complexity around her application arose as my client wanted to purchase her first home in London with only one year’s accounts, and an accountant’s projection for the year following. Furthermore, in order to secure the property, she was also looking to borrow 5x income with her latest accounts.
When conducting their affordability checks on self-employed borrowers such as my client, the majority of lenders take an average profit figure over the last three years. This is in spite of the fact there are more self-employed people in the labour market than ever before. From a lender perspective, self-employed clients are less likely to have a regular and stable monthly income in comparison to those who are employed. Affordability is the king of mortgage applications, so I knew that I had to approach a lender who would take a holistic view of my client’s situation.
With everything considered, I knew that my client’s only chance of securing strong terms would be with a lender who took a manual approach to underwrite. I thus negotiated terms with a lender who took a holistic view of my client’s affordability, meaning they were comfortable with just one year’s accounts in conjunction with the accountant’s projection for the following year.
Furthermore, due to Enness’ warm working relationship with the lender in question, I was able to negotiate terms which could support my client’s requirement of 5x income.
As a result of this strong relationship with the lender, I successfully delivered on all fronts. I secured a fantastic 2-year fixed rate of 1.99% for my happy client, over a period of 35 years.