Above and beyond to save self-employed mortgage applicant thousands on mortgage deal

We recently progressed a complex, self-employed residential mortgage application in just 10 working days, while demonstrating our real-life lending approach through the process.

Working with the broker EHF Mortgages, we worked quickly and flexibly to progress the mortgage application when other lenders may not have been able to.

The clients, who were a couple trading as Limited Company directors, sought a mortgage for a new build property. The case presented itself as more complex as it progressed, due to a change in company structure part way through the application.  

To help maximise the client’s borrowing capability, we assessed the self-employed couple’s affordability on net profits before tax. This gave the borrower an increased capacity to borrow a higher loan amount. We also used the applicant’s latest year’s trading figures rather than an average from the last 2 to 3 years, which would have included any impacts from the Covid-19 pandemic. This, alongside our ability to account for the client’s shareholding value increasing, allowed the client to borrow an even greater amount for their property.

Our specialist expertise in real-life lending, particularly for more complex cases, meant we were able to assist with the case and provide the required level of financing to the clients. Our residential rates also reduced between the mortgage offer being made and completion, and so we liaised with the broker to honour a lower rate for the borrowers, saving them thousands of pounds over their fixed term mortgage deal.

We were able to provide an 80% LTV for the property, helping the client achieve their homeownership goals.

David Eaves, Head of Sales at The Mortgage Lender, comments: “This case is a prime example of how we go above and beyond to support our brokers and end customers. A number of complex factors were at play here, and our team ensured we provided clear underwriting, speedy responses, and a flexible approach throughout in order to accommodate the client’s borrowing needs. Justin Moy from EHF Mortgages, Andrew Heath, one of our BDM’s and Leanne Robertson, one of our mortgage underwriters, worked efficiently together to ensure the application was processed within 10 working days, half the average time an application usually takes, meaning the client could meet their homeownership goals.”

Justin Moy, MD at EHF Mortgages, comments: "The challenge was that the client was drawing 100% of the profits, but only owned 50% of the business – a family member owned the rest of the shares. Once we understood the situation and had agreed a potential way forward with the TML underwriters, we recommended that the client spoke to the family to take full ownership of the company. TML was then able to facilitate the mortgage and their affordability allowed the use of just the last years’ company profit.

The client had already exchanged on the purchase some months ago, without a suitable mortgage in place, so not only was the challenge to lend the funds, but at the speed needed to keep the new build developer onside, as much as the rest of the chain."