At Coreco we arrange mortgages for borrowers from all walks of life, not just those who have a standard income and employment. We specialise in making even the most complex loan as simple as possible, whether you are employed, self-employed, contracting or freelance or if you have multiple sources of income.
To this end we thought it would be a good idea to show you examples of the type of mortgages we have arranged which have enabled our clients to move happily into their own home with the minimum of fuss and structured in the way that suits them best.
Case Study – Self-Employed
Our clients approached Coreco seeking a mortgage of £700,000 in order to purchase a new family home in North London.
The main applicant was a self-employed consultant who had just finished his first full year of trading. He owns the business, a limited company, 50-50 with his wife. Previously he was employed as a consultant in the same industry. His first year of trading had proved so successful he was able to leave a substantial amount of profit within the business, drawing less than half of the net profits in the form of salary and dividends.
With just one year’s trading history and accounts, our client was facing substantial difficulty obtaining the required mortgage. He had also been advised that he must draw a far great proportion of the net profit as income, so that it would show in his tax return and therefore could be taken as income by one possible lender.
Coreco were able to find a highly competitive mortgage for the client based in just one year’s accounts, and using the net profit figure for income rather than drawings. This allowed the client to keep his profit retained within the business, saving him a potential personal tax bill of several thousand pounds.