The client

The director and sole shareholder of a fast-growing consultancy, recently incorporated, with one year of filed accounts and substantial profit retained within the business rather than drawn as income.

The challenge

The high street wanted two or three years of accounts and assessed affordability on salary and dividends alone, ignoring the retained profit that made the case comfortable. On paper the declarable income looked far too low for the loan required.

Our approach

We placed the case with a lender that assesses company profit, not just drawings, and evidenced the trajectory of the business with management accounts and an accountant’s projection alongside the filed year.

The outcome

Lending of £1.9m was agreed at 70% LTV on a five-year fixed, using one year’s accounts and retained profits, completed five weeks from instruction, with headroom the mainstream assessment would never have allowed.

Client details have been anonymised. This is an illustrative example; individual circumstances and available terms will differ. Your property may be repossessed if you do not keep up repayments on a mortgage secured against it. Some forms of finance are not regulated by the Financial Conduct Authority.