An existing client referred a self-employed financial consultant to Enness who required finance against an unencumbered property in North West London, valued at approximately £1.7 million.
The client wished to raise capital for two purposes: to fund refurbishment works to their existing property and to support the purchase of an additional property as part of an immediate investment opportunity. The time-sensitive nature of the proposed acquisition meant that a lender able to provide a relatively fast turnaround was important.
The client was self-employed as a sole trader, with income varying throughout the year due to the nature of their consultancy work. This variable income profile meant that the application required careful presentation to demonstrate the client’s overall financial position and ability to support the proposed borrowing.
OUR SOLUTION
Enness approached a lender experienced in assessing self-employed applicants with variable income. The client’s wider financial position and income profile were presented to the lender as part of the underwriting process, allowing the application to be assessed on its individual circumstances.
The lender was also able to accommodate the client’s requirement for a relatively quick turnaround, with an offer produced within a short timeframe. A five-year fixed-rate mortgage was arranged over an 18-year term, providing rate certainty while releasing capital from the unencumbered property.
The facility enabled the client to access funds for the planned refurbishment and investment opportunity while retaining ownership of their existing property.
This case demonstrates how specialist mortgage lending can assist self-employed borrowers with variable income, particularly where a transaction requires both flexible underwriting and a timely funding solution. Careful lender selection and presentation of the wider financial circumstances can be important where conventional affordability assessments may not fully reflect a borrower’s position.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, property suitability and lender criteria. Terms, rates, LTVs and availability may vary depending on individual circumstances.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Property values can fall as well as rise.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
