Remortgage for self-employed client on £2M self-build property

Key Figures

Property price: £2,000,000

LTV: 50%

Rate: 2.85% 2 year discounted variable

Over how many years: 25 years

 

What was the property?

The property was a 5 bedroom, detached, really unique self-build property which the client had just finished. It has a timber frame and SIP panels which lots of lenders did not like.

 

Who was the client?

The client and his wife were looking to remortgage away from the development bridge they had and to pay back a family member some money for the funds they borrowed to finish the property off.

 

What were they looking for?

As much as they could borrow for the above reasons.

 

Why was this case difficult?

The client’s wife was a 23% shareholder which in most lenders eyes is a self-employed client, but they used only her salary. In this instance, they used her husband’s net profits and the latest years’ salary too which allowed us to maximise the loan. This flexible approach to self-employed clients was crucial to getting this to work. Most lenders have one policy and stick to it which would have meant it wouldn’t have worked from an affordability perspective.

 

What was the process- how did you get around it?

I needed to prove that the client's expenditure was minimal so even though they needed more than the usual 5 x borrowing, they were able to afford it which the lender understood.

 

What was the end result?

I managed to maximize the loan amount as much as possible, all on interest-only, with around 6 x income.

 

If you’re self-employed and looking to secure property finance, please get in touch on +44(0)2037589393 or email us at [email protected].