A number of your customers may have found themselves in an uncomfortable financial position before the pandemic and even more so now which may have led to a fragile credit profile. Securing finance from a High Street lender will be extremely hard and that’s why we’ve updated our credit policy to further support self-employed borrowers who have been impacted by the Covid-19 pandemic.
Here’s an example of how we were able to help Nathalie purchase a new house despite Covid impacting her income in the last year.
Nathalie, a restaurant owner from Essex was looking to purchase a new home but found her situation quite complicated having been self-employed and working within an industry hugely affected by the pandemic. Pre-covid, her personal income was £50,000 but as the government instructed all pubs, hairdressers and non-essential shops to close down, Nathalie found herself relying upon revenue solely from takeaways and delivery apps last year in the height of the crisis.
Nathalie’s restaurant started the financial year slow up until July when she capitalised on the “Eat Out to Help Out” scheme which propelled her business levels back to pre-covid. Despite that, Nathalie still found it increasingly difficult when applying for a mortgage as other lenders insisted on using her latest year earnings which showed as £35,000 because of that early blip.
Luckily Nathalie’s financial adviser recommended Bluestone Mortgages after learning about our updated policy for self-employed which allows us to use 2019/2020 SA302s providing the following is met;
- Experienced more than a 10% reduction in business income as a result of the pandemic
- The most recent business bank statements (three months) are in line with the applicant’s 2019/2020 SA302s
Our Underwriter successfully assessed the application, so we were happy to make Nathalie an offer as her earnings and business continued to demonstrate a solid return.
Do you have self-employed clients who have been impacted by Covid-19 and are bouncing back from it? Together we can help them! Submit a case to us via our online portal Bluelink and we can help you find the right solution for your customers needs.
You can also follow us on LinkedIn to find out more.
In the meantime, if you want to learn more about your clients options, feel free to give me a call on 0207 081 2668 or alternatively you can request a call back here.