Many of the UK’s most successful professionals are self-employed entrepreneurs with multiple income streams. Sadly, mortgages for self-employed individuals can be tricky, because lenders find it much easier to judge mortgage affordability using conventional salaries.
This is incredibly frustrating, especially for those whose incomes mean they can easily service a large loan. For these applicants, using a specialist broker can be the fastest route to resolution.
If you’re currently searching for residential property finance, our guide Mortgages for self-employed borrowers, could be a useful read – you can download a free copy here.
The client:
The client was a high net worth individual (HNWI) with several income streams from businesses both overseas and at home in the UK. Her annual income exceeded £1 million. However, like many self-employed people, she left a significant amount of money within her companies instead of taking it all as a salary.
Her income stream also consisted of four different currencies, and there was a high likelihood this would extend even further in the future, in light of some business contracts on the horizon. All of this made it difficult for lenders to assess her affordability, meaning many were unwilling to offer her a loan.
The client was looking to purchase a beautiful multi-million pound residence in a highly desirable part of London. While she could easily afford to service a large mortgage, she was struggling to find a lender who was prepared to grapple with the complexity of her financial situation.
The solution:
We regularly deal with HNWIs whose income is incredibly complicated, so we have the expertise and industry contacts to find resolutions at speed. We approached an exclusive private lender who only deals with mortgages over £2 million, and were able to begin a relationship on this client’s behalf.
Having strong relationships with lenders like this is a crucial part of HNW mortgage broking, as these types of banks have the understanding to provide mortgages regardless of how complex an applicant’s income streams are. This lender was happy to offer the client’s desired mortgage on a five-year, interest-only basis – a fantastic result.
The case in brief:
- Self-employed HNWI with multi-currency income streams
- Seeking a large residential mortgage in London
- Five-year interest-only terms secured
- Private bank which exclusively deals with £2 million plus mortgages