Skip to Main Content
BTL Investment Capital Raise for Self-Employed Borrowers with Complex Income

BTL Investment Capital Raise for Self-Employed Borrowers with Complex Income

The Clients: Two self-employed individuals, listed as directors for their limited company, were looking to purchase their first buy to let.

The Property: Our clients lived in a five-bedroom detached property in the Southeast countryside. With good travel links to London, and local amenities close by, the property was the clients’ forever home.

The Finance: Our clients wanted to remortgage and capital raise against their home to fund the purchase of a buy to let investment.  

The Challenge: Our initial challenge with this case was that our clients had yet to find a buy to let property to purchase. Many lenders like to see an offer acceptance document for the onward purchase to prove what the money will be used for in order to lend, while some just need confirmation that a property has been found to purchase. However, in this case, the clients had neither. As such, the number of lenders we had access to was limited, as they had to be happy to lend the finance in good faith that our clients would use the money to purchase a buy to let property.

Both clients took salary and dividends from their businesses, which created our second challenge. Most lenders will solely use tax returns to base their affordability calculations on and ignore net profits. As such, our clients’ incomes alone did not satisfy affordability calculations and would be deemed insufficient to support the finance required.

The Solution: Our expertise and experience working on residential and buy to let mortgages meant that we quickly identified a lender happy to work to the criteria above. The lender we selected was happy to use an average of the companies’ net profits over the last two years to calculate the total borrowing amount. This allowed our clients to borrow double than if the lender solely focused on their salary and dividends.

The lender was also more than happy to lend despite the lack of property lined up to purchase. Due to our knowledge of these complex deals, we managed to achieve submission, offer and completion all within one month for our client. Given the backdrop of the current property market, these are exceptional results, and it’s important to note that this is not the norm for any type of application we are currently seeing. Here are the details:

Property Details

Property value: £1,400,000

Loan amount: £910,000

LTV: 65%

Rate: 3.46% fixed for 5 years

Term: 29 years, capital and interest

Mortgage payment: £4,150.86 per calendar month

Lender arrangement fee: £999



*Rate as at August 2022 and subject to change


Mortgages for Business Ltd is registered
in England and Wales No. 2502713.

Registered office:
17 Kings Hill Avenue,
Kings Hill, West Malling,
ME19 4UA.

© Copyright 2023. All rights reserved.

Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.