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  • Writer's pictureThe Cedar Crest Team

Client Case Study: High-Earning, Self-Employed Client With Minimal Credit History

Updated: Aug 25, 2022

Helping a client get mortgage ready.

 


 

KEY FACTS

  • Client: High-Earning Entrepreneur With Minimal Credit History In The UK

  • Property type(s): Residential (Main Home) and Buy-To-Let (BTL) Flat

  • Property Value(s): £435,000 (BTL) and £650,000 (Main Home)

  • Loan To Value: 76% main residence, 75% BTL

  • Mortgage Adviser: Sam Harley , based in Hong Kong, HK.


 

SITUATION

We were approached by a British self-made, high-earning entrepreneur who owned his main residence in full (approx. value £650k) and wanted to raise finance to purchase a Buy-To-Let flat in Chichester, UK. Although a successful entrepreneur, his success was fairly recent which meant whilst his income was high enough to buy the property, he didn’t yet have his business accounts audited (something banks require for a minimum of 2 years) and his financial history was suboptimal.


CHALLENGE


Due to previous businesses that were not as successful, he had some blips in his credit file. He had also only recently moved into his main residence and had not registered on the electoral roll which meant that no bank could identify him as a resident owner of his current address when conducting a credit search. In addition, he had previously missed the payment of a utility bill that had been cleared but was still showing as outstanding on his credit file, this meant that all the mainstream lenders would not consider him for a mortgage and other options would need to be considered.


After a few failed pre-approval decisions from various lenders, the developer of the new Buy To Let property he was looking to purchase was threatening to cancel the transaction.


 

SOLUTION

When the client initially contacted Cedar Crest, he had already worked with various mortgage advisers who had rejected him due to his financial history and the fact he was unable to pass many mortgage lender requirements. After analysing his financial circumstances, Sam Harley, the mortgage adviser of this case, decided to help him get mortgage ready. This was no easy task as it involved many steps and the right industry knowledge to understand what the client currently lacked and how we could assist him to ensure he met the requirements of a few specialist lenders.


We assisted him in getting registered on the electoral roll, got the previous utility bill declared as "cleared" from his water supplier, and his company also managed to get one year of audited accounts just in time. With our guidance and assistance, one lender accepted to help him and he was able to raise money from his main residence (£500k) to use towards the Buy-To-Let property he wanted to purchase. He was able to secure the BTL just before the developer cancelled the transaction and the client was able to get a second BTL mortgage to complete the BTL purchase.


Most importantly, get got a very happy client! Below are a few comments from their experience:


"Sam- Massive, massive thanks for all of your help. You've been amazing! I really appreciate you making it happen with all the hurdles we've had to deal with."


-Jimmy


 

TAKEAWAYS

Many mortgage brokers will not go through the long process of assisting someone with a complex financial history and a bumpy income trail to get mortgage ready.

  • High earners that are recently self employed can still get a mortgage with one year of audited accounts

  • Even with minor blips on credit file there is a solution

This is why working with the right mortgage adviser that will help you get mortgage ready is key as this will determine whether financing is available for your property and what your options will be.


 

>> WANT TO GET MORTGAGE READY? <<

Are you an entrepreneur who has struggled to get a mortgage in the UK?

We've helped numerous clients get mortgage ready and assist them with getting a mortgage from start to finish. To discuss your requirements, speak to Cedar Crest Ltd – telephone UK T: +44 (0) 203 883 1017, HK T: +852 6645 4462 – email info@ cedar-crest.co.uk.


Your home may be repossessed if you do not keep up with repayments.

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