Paul: Self-employed case study
Working with complex income circumstances
Who did we help?
Paul is self-employed and has been running an online textile company for five years. The business made a loss in the first year, a small profit in year two, another loss in year three and increasingly good profits in the past two years.
Paul’s wife Katie is a head teacher. Their living costs are modest and Katie earns a good income. For this reason, Paul only takes a low salary and minimal dividends from his company, choosing to leave most of the profit in his business.
"Paul only takes a low salary and minimal dividends from his company, choosing to leave most of the profit in his business."
What did they need?
Paul and Katie were keen to move into a larger property.
Why were they facing challenges?
Paul and Katie’s broker found that some lenders will only use the income and dividends drawn from the business to assess affordability.
This didn’t provide enough income for them to secure the size of home they wanted.
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