The client was looking to buy a property but had been turned away by several traditional banks due to their complex financial situation. The complexity arose from the client’s short history of running their own limited company – only 10 months – which presented significant obstacles in securing a loan from traditional lenders.
Most require 2 to 3 years of experience running a limited company before considering a loan application. Additionally, the client had not drawn any income from the business and had not yet submitted a personal tax return due to not completing their first full year of business.
Having been turned away from several standard lenders previously, our Private Finance consultant identified that this type of case would be suitable for a specialist building society, known for their flexibility and willingness to take a more manual approach to lending decisions. These types of lenders often consider the broader context of a borrower’s situation rather than strictly adhering to rigid criteria.
Our consultant worked closely with the client’s accountant and the client themselves to construct a compelling narrative to present to the lender’s credit committee and justify why the loan was sustainable. The narrative included:
Thanks to the detailed and well-supported application prepared by Private Finance and the client’s accountant, the building society approved the loan allowing the client to proceed with the buying the house.
This case study highlights the importance of flexibility, personalised service, and strong relationships with a diverse range of lenders, including small building societies only a very small handful of UK brokers have access to. These types of cases require justification for the loan, moving into more depth than just the facts and the figures.
If this is something that is relevant to you please contact us and we’ll see if we’re able to assist. Call us on 0800 980 8777 or email info@privatefinance.co.uk
Drawing on 25 years of experience and relationships, we negotiate optimal Company Director mortgages.
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