How one year’s accounts
unlocked a larger mortgage
A high-street lender assessed the customer’s only full year of self-employed accounts on its own, avoiding an average that would have significantly reduced the mortgage amount available.
At a glance
- Customer: Self-employed applicant
- Challenge: Full and partial-year accounts
- Outcome: Full available loan amount secured
What made the difference
The lender used the only full year of accounts in isolation rather than averaging it with the completed partial year.
When averaging reduced the loan size
The customer had one full year of self-employed accounts alongside another completed partial year.
Under the approaches available from other lenders, the two periods would have been averaged when assessing income. This would have significantly reduced the income used for affordability and the resulting mortgage amount.
The customer needed a lender whose assessment better reflected the complete year of trading.
Finding the right lender approach
We identified a high-street lender prepared to underwrite the application using the customer’s only full year of accounts in isolation.
This meant the completed partial year did not reduce the available loan amount through averaging. The application was submitted using the lender’s agreed income approach.
Securing the full available amount
The lender agreed to underwrite the case on this basis, allowing the customer to secure the full available loan size.
They could proceed straight away without accepting the considerably lower borrowing amount produced by averaging the two accounting periods.
One year’s accounts limiting your borrowing?
Different lenders may assess the same accounts differently. Let’s find out which approaches could fit your circumstances.
Important information
This story describes one application and does not guarantee the same outcome for another applicant. Mortgage availability and borrowing amounts depend on your income, circumstances, accounts, the property and lender criteria. The customer has been anonymised to protect their privacy.
Your home may be repossessed if you do not keep up repayments on your mortgage.
How to apply
Call Team Muttuo
Discuss your accounts and borrowing needs. Open Mon–Sat, 9am–5pm.
