- Client: UK National and Resident
- Mortgage: Circa £1 million
- Property Value: Circa £1.5 million
- Corporate Finance: £150k unsecured business loan
- Life Insurance: Circa £1 million
- Mortgage Rate: 5.67% fixed for five years
Enness was approached by a UK national and resident looking to purchase a new primary residence in one of the Home Counties. The client was self-employed and working as a contractor across multiple contracts, but had only a limited track record operating under this arrangement.
The client also had a significantly impaired credit history following considerable changes in their personal circumstances. This created an additional challenge when seeking a mortgage, particularly given the size of the loan required and the relatively recent nature of their self-employed contracting work.
A key requirement was finding a lender that could assess affordability using the client’s day-rate income from their employment contracts rather than relying solely on their tax returns. The client also needed a lender that was comfortable with their credit profile while providing the required loan-to-value within a tight timeframe.
Enness reviewed the client’s wider circumstances and identified a lender able to take a more flexible approach to the assessment of their contracting income. By presenting the client’s employment arrangements and day-rate earnings clearly, we were able to demonstrate the underlying affordability of the proposed mortgage despite the limitations of the client’s tax history.
Enness secured a mortgage of approximately £1 million against the £1.5 million property, representing a loan-to-value of around 67%. The mortgage was arranged on a five-year fixed rate of 5.67%, providing the client with greater certainty over their mortgage payments during the initial fixed period.
As part of the wider financing requirements, Enness also arranged approximately £1 million of life insurance to provide protection for the mortgage borrowing.
Following completion of the property purchase, the client also required additional funding for their business. Enness was able to arrange a £150k unsecured business loan to support the SME’s working capital requirements. The facility was provided within 48 hours and structured with fixed repayments over a 12-month term.
By considering the client’s property finance and corporate finance requirements together, Enness was able to provide a broader funding solution rather than treating each requirement in isolation. The combination of specialist mortgage structuring, protection and unsecured business finance allowed the client to complete their property purchase while also securing the working capital required for their business.
This case demonstrates how a borrower’s circumstances can fall outside conventional lending criteria when they have complex contracting income, impaired credit and additional business financing requirements. A more holistic approach can help identify lenders that are prepared to assess the wider financial picture.
Enness works with a wide network of lenders across specialist mortgage and corporate finance markets. If you have complex income, impaired credit or require finance across both personal and business requirements, speak to a mortgage specialist to discuss your circumstances or explore our corporate finance solutions.
Risk Warning:
Mortgage and business finance carry risks. Failure to meet repayment obligations could result in enforcement action against secured property or other consequences under the terms of the relevant facility. Borrowers should ensure that they have a realistic repayment strategy and consider the affordability of all borrowing before proceeding.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or insurance advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction. Enness does not provide advice on insurance products.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
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.
