The Mortgage Lender supports complex self-employed case with large loans deal

We recently showcased our real-life lending approach as we progressed with a large loan for joint applicants with complex income streams.

Working with mortgage broker Indrit Bajraktari of John Charcol, we worked effectively and decisively to support a couple moving forward on their property journey. Seeking a large loan for their property move, the applicants also had complex income streams to take into account when assessing their affordability.

One of the couple was a self-employed limited company director, having set up and worked on their side-hustle for 2 years alongside their employed job before taking the step to launch their business officially and become a full-time Limited Company Director. Their pre-tax profit from the side-hustle work to a permanent full-time role increased from £10,000 to over £216,000 in the most recent year. We were able to consider the business’s net profit before tax (£203,994), plus salary in the mortgage application, showing our bespoke approach to assessing income. The second applicant had two employed jobs, earning a combined income of £47,000.

Taking all of these incomes into account, we were able to consider lending significantly more than other traditional lenders on a 2-year fixed rate. Utilising all incomes, including the director's pre-tax profits from the most recent years' accounts was necessary to obtain the level of borrowing the applicants required to facilitate their onward residential purchase. The deposit came from converting their existing property to a buy-to-let and capital raising.

Our approach to underwriting this case, led by Gary Craig, enabled the customers to fulfil their property goal to upsize while keeping their existing property as an ongoing investment.

We were able to lend £781K to the couple at an LTV of 74%, enabling the property purchase of just over £1m.

Chris Kirby, Head of Specialist Distribution at The Mortgage Lender, comments: “Our ethos is all about real-life lending and working with those who may find it more challenging to move up the property ladder. No one should unnecessarily compromise on their passions, and this case is a perfect example of highlighting our commitment to supporting individuals not only in their property ambitions but also in their professional working lives too. Making the jump from a successful side hustle to a full-fledged business is no mean feat, and coupled with seeking a large loan, we are proud to have offered this couple the loan they were seeking.

“We take pride in our assessment of affordability, using alternative and flexible solutions to help maximise a customers’ borrowing capability, such as considering profits before tax plus salary for limited company directors. Affordability remains one of the biggest constraints for borrowers at the moment, and with the support of Keith Campsie, BDM at TML, we were able to carry this case to offer and help the end customer with their property goal.”

Indrit Bajraktari, Mortgage Adviser at John Charcol, said: “TML showed a fantastic level of service to my clients and I. It was a complex case, with the applicants having multiple income streams and a business that had only recently launched. Making the move from employed to self-employed is a big decision, and can ultimately have some influence on the success of a mortgage application, particularly for a large loan. But the TML team took this all into account and approached the case with open minds to support them with their property dreams. I am grateful to all who worked on this case and made it a successful one for me to take to my clients to achieve their property ambition.”