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Self-employed lending success story
This week's case study highlights how Alexander Hall helped our clients buy their first home.
Our clients' challenge
Our clients were first time buyers, buying a flat in North London with a 15% deposit. The clients had moved home several times in the last 3 years, which created an inconsistent credit profile, negatively impacting their score. In addition to this, the clients’ income structure did not fit with many lenders. Our clients run their own online talent company and whilst their accounts showed it had gone from strength to strength in recent years, they had only needed to draw relatively small personal earnings from the business to cover living costs, leaving a significant portion of earnings in the company. Most lenders were unwilling to consider the earnings retained within their company as personal income.
Alexander Hall's solution
We sourced a lender that would be prepared to take a common sense approach to each of these considerations. They were able to take a flexible view on the credit footprint, as our clients were on the electoral roll and held active credit at the current address. As our clients owned their own business outright, the lender focussed it’s affordability calculations on the profit of the company, rather than just the personal drawings. This allowed us to obtain a mortgage which was both suitable for the client’s circumstances and for a greater loan than what would be offered by lenders conventionally.
Since the start of the Covid-19 pandemic there have been significant challenges for business owners and the self-employed, including the added complexity of obtaining a mortgage. We were delighted to help our clients secure their home and count them amongst the many others that we have been able to help during this time.
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