About The Client
Our client was an entrepreneur wanting to purchase a £1.5 million property with £1 million in borrowing. With two years of business accounts showing fluctuating performance and a rapidly growing third-year projection, traditional affordability assessments posed a challenge.
The Challenge
Year 1 reflected a £48,000 loss, while Year 2 showed £192,000 profit. By Year 3, the client was six months in, tracking for £1 million profit - a significant upward trend. However, standard lender assessments often focus on past earnings, potentially restricting borrowing capacity despite clear financial growth.
The Solution
MSP Financial Solutions secured a lender willing to factor in the year-to-date (YTD) earnings, averaging performance across the full financial trajectory. Additionally, they recognised the client’s prior substantial PAYE income in the same industry, reinforcing confidence in long-term stability. The lender structured the loan on an interest-only basis, optimising affordability while aligning with the client's financial strategy.
The Outcome
The client successfully secured full borrowing, acquiring their desired property while maintaining financial flexibility. This tailored lending approach empowered growth-focused entrepreneurs, ensuring mortgage solutions evolved alongside their business success.
If you’d like to understand how lenders assess self-employed income, read our guide.
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