Mortgage for Self-Employed First-Time Buyer with Limited Trading History

The Client: Working on a contractual basis in the entertainment industry, our client was a self-employed, first-time buyer seeking to get onto the property ladder. The nature of his work meant that income was not necessarily paid monthly, making it more complex for lenders to underwrite.

The Property: A one-bedroom bungalow in South-East England. The location benefitted from many local green spaces, amenities, and transport links, making it an ideal first home. 

 The Finance: Keen to access the most competitive rates, our client had spent years saving business profits for a deposit. Fortunately, their family were also able to gift additional funds to top up the savings, meaning that our client only required a 53% LTV mortgage to complete the purchase.

The Challenge: Although our client had three years of accounts available, a substantial new contract within the last year meant we’d likely be able to maximise borrowing with just these. However, doing so meant our main challenge would be to find a lender that would accept the application. Typically, lenders require two years of accounts to better understand the stability and growth of the business. Only a small handful of lenders will accept one years’ accounts, the majority of which are specialists and can only be accessed through a mortgage broker.

The Solution: Using our experience and independent access to the whole of the mortgage market, we researched the additional criteria of the few lenders we knew only required one years’ of accounts. Having identified a few that would potentially work, we assessed which offered the most suitable rates for our client. 

Having collected all the supporting documentation, including accounts, his most recent tax return and details of his current contracts, we submitted the application. From here, the process moved swiftly, and our client is now the proud owner of their first home! Here are the details:

Property Details

Property value: £335,000

Loan amount: £178,000

LTV: 53%

Rate: 1.99% two years- fixed

Term: 35 years, capital and interest

Mortgage payment: £595.35 per calendar month

Lender arrangement fee: £1,999 added to the loan

Application: Individual

Consultant: Ross MacTaggart, 01732 471630

11th August 2021