Norwich £123K Mortgage for Self-Employed Secured Despite Income Challenges
- Product Type: Residential Mortgage
- Location: Norwich
- Loan amount: £123,200
- Term/LTGDV: 5-year fixed product, 35-year term
The Scenario – Securing Mortgage for Self-Employed Client
Our clients were eager to purchase a new residential property. Applicant 1, who is self-employed, had experienced a significant increase in income in the latest tax year compared to previous years, which created both an opportunity and a challenge in securing the necessary mortgage.
The Challenge – Addressing Self-Employment Income Limitations
To borrow the required amount for the purchase, it was crucial to find a lender willing to base the mortgage on the applicant’s most recent year of income. This is particularly challenging for self-employed individuals, as most lenders prefer to average income over two years to account for fluctuations. With the applicant’s business still in its early stages, their earlier income figures were not representative of their current earning potential, adding complexity to the case.
Our Solution – Securing a Lender Focused on Current Income
Through detailed research and proactive communication with potential lenders, NM Finance identified a lender willing to assess the applicant’s most recent year of self-employed income. We provided a clear explanation of why their latest income figures were significantly higher, including a justification rooted in the business’s growth trajectory. This approach allowed us to successfully secure the mortgage required to purchase their new home, overcoming the typical barriers faced by self-employed applicants and ensuring our clients could move forward with their plans.
