Mr and Mrs Jackson: Self-employed case study
Providing a flexible approach to underwriting
Who did we help?
Mr and Mrs Jackson live in a small rural village and their house adjoins the village post office which had recently closed its doors for the last time.
This presented an exciting opportunity for the Jacksons who wanted to buy it and knock-through to create one large family home. The couple ran an unusual company which saw a strong net profit in the past year.
"The couple had some savings, but they wanted to buy the property through borrowing and keep their savings for conversion works."
What did they need?
Their current home is worth £365k and their mortgage is only small.
The purchase price of the post office was £335k and the combined end value of the enlarged house was £800k - offering them a small uplift in overall value. The couple had some savings, but they wanted to buy the property through borrowing and keep their savings for conversion works. They therefore needed to borrow all of the purchase price of the new part of the home.
Why were they facing challenges?
Their existing lender had an inflexible outlook and wasn’t willing to assist due to the unusual scenario and because the couple were self-employed, and only take minimal dividends from the company.
While their company was growing and could demonstrate year-on-year improvement, in previous years the net profit performance wasn’t quite as strong as the most recent year.
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