Self-employed remortgage in Lancashire: how we secured a deal when others couldn’t
Getting a self-employed remortgage in Lancashire can be hard. Our clients ran a limited company. They had traded for just two years. Their first-year tax calculation showed a low dividend. Their own lender said no. Another broker tried and got it wrong. We didn’t. We spoke to underwriters first, agreed how to present the case, and completed the remortgage in four weeks. This is how we did it.
Why this self-employed remortgage in Lancashire was complex
Many people think a profitable business is enough. It isn’t. Lenders look at what you take out of the business, and how they read your figures varies a lot. For company directors, most lenders look at salary plus dividends from your SA302s. If one year looks low, the whole case can look weak.
Our clients had four challenges that made this case harder:
- Only two years’ trading history as a limited company
- A low dividend in the first year’s SA302, which dragged down their income
- £30,000 of extra borrowing for home improvements and some debt consolidation
- A previous decline from their own lender on affordability
Meanwhile, the clock was ticking. Their fixed rate had ended. They had moved onto their lender’s standard variable rate, and every month on it cost them money.
What went wrong before
Our clients had tried twice before. First, they went direct to their current lender. The lender declined them on affordability. Its criteria simply didn’t fit their income.
Next, they used another broker. That broker did not understand how the lender would treat the clients’ self-employed income. The application was submitted without the right groundwork, and it ran into trouble. Each setback cost the clients more time on the variable rate.
“By the time they came to us, they’d been told no twice. They were starting to think it couldn’t be done. It could. It just needed setting up properly.” — Andrew Stewart, Orchard Mortgage Solutions
This happens more than it should. Self-employed cases need careful preparation. A rushed application can do more harm than good. Read more about how we help with self-employed mortgages on our dedicated page.
Been declined for a self-employed remortgage? Call Andrew on 01257 543013 or send us a message.
Our approach: speak to underwriters first
We did not submit anything straight away. Instead, we picked up the phone. We spoke to underwriters at five lenders: Coventry Building Society, NatWest, Santander, Chorley Building Society and Leeds Building Society. We explained everything: the two years’ trading, the salary and dividend split, the low first year, the extra borrowing and the previous decline.
We asked directly: will you consider this case, and how do you want it presented?
This approach protects clients. Everything was either agreed upfront or we knew exactly how the lender wanted to see it. So there were no nasty surprises once the application went in.
What we checked with underwriters upfront
- Will you lend to a company director with two years’ trading?
- Will you use PAYE salary plus share of net profit, rather than SA302 figures alone?
- How will you treat a low first-year dividend on the SA302?
- Will you allow capital raising for home improvements and debt consolidation?
- What is your maximum mortgage term, and what overpayments do you allow?
How we made the numbers work
The breakthrough came from how the lender assessed income. Most lenders take a director’s income from their SA302 tax calculations. For our clients, that meant salary plus a low first-year dividend. It wasn’t enough.
This lender agreed to use the clients’ PAYE salary plus their share of the company’s net profit instead. That gave a much stronger income figure, and much better affordability, than the SA302s alone.
To close the remaining gap, we extended the mortgage term from 23 years to 27 years. A longer term means lower monthly payments, so the case fitted the lender’s criteria at 79% loan to value.
But we didn’t want our clients paying for longer than they needed to. So we built in a plan. The clients make regular overpayments, and we confirmed the level with them so their overall term won’t extend. They keep the flexibility of a lower required payment, and they stay on track to be mortgage-free when they planned.
“Using salary plus net profit was the key. The SA302s only told part of the story. The longer term did the rest, and the overpayment plan means it won’t cost them extra years.” — Andrew Stewart, Orchard Mortgage Solutions
The outcome: remortgage completed in four weeks
With the groundwork done, we submitted the application correctly. One of the high street lenders we’d spoken to approved it on a competitive rate. The remortgage completed within four weeks.
The results for our clients:
- Off the variable rate and onto a competitive new deal
- £30,000 raised for home improvements and some debt consolidation
- Around £255 a month saved compared with what they were paying on the variable rate, even after borrowing the extra £30,000
This only happened because of the work done before submission. Two declines did not mean the case was over. It just hadn’t been presented in the right way.
What this means for you
If you’re self-employed and want to remortgage, whether in Lancashire or anywhere else in the UK, here is what to take from this case.
First, don’t sit on your lender’s variable rate. When your fixed rate ends, start looking. Every month on the variable rate can cost you hundreds of pounds. Our rate change calculator shows what a new rate could mean for your payments, and our guide to a fixed rate mortgage ending in 2026 explains your options.
Second, your current lender isn’t your only option. A decline from them doesn’t mean every lender will say no. Lenders treat salary, dividends and short trading histories very differently.
Third, choose a broker who knows self-employed income. Not every broker understands how each lender reads SA302s and company figures. Getting this wrong can mean wasted applications and extra credit searches on your file.
Finally, if you’ve been declined before, don’t give up. A decline often means the wrong lender, not the wrong case. Read more about your options in our remortgage advice section.
Self-employed remortgage in Lancashire FAQs
Can I remortgage if I’ve only been self-employed for two years?
Yes. Many mainstream lenders accept two years’ accounts or tax calculations, and some will consider one. Each lender treats short trading histories differently, so choosing the right one matters.
How do lenders assess limited company directors?
Most lenders use salary plus dividends, taken from your SA302s and tax year overviews. Some will use your salary plus your share of the company’s net profit instead. If you leave profit in the business, that can give you a much higher income figure. Our how much can I borrow calculator gives a rough guide.
Do lenders use my latest year’s income or an average?
It depends on the lender. Many average your last two years. Some will use your latest year if income is rising. If income has fallen, most will use the lower figure.
Can I raise extra money when I remortgage?
Yes, as long as it’s affordable and within the lender’s loan-to-value limits. Home improvements are widely accepted. Most lenders allow some debt consolidation, though some set limits. Read our guide to remortgaging for more.
What documents will I need?
Usually your last two years’ SA302s and tax year overviews, recent payslips, bank statements, ID and your current mortgage statement. Some lenders also ask for company accounts or a letter from your accountant. Our guide to applying for a mortgage covers this in more detail.
You can get your SA302 tax calculation from HMRC online, or ask your accountant if they file your return.
What happens when my fixed rate ends?
You’ll usually move onto your lender’s standard variable rate, which is often much higher. Once you’re on it, you can normally remortgage without early repayment charges. It pays to start looking a few months before your deal ends.
Talk to us about your self-employed remortgage in Lancashire or across the UK
At Orchard Mortgage Solutions, a self-employed remortgage is exactly what we do, for clients in Lancashire and right across the UK. We speak to lenders before we submit. We find the right fit for your case. Our clients avoid wasted applications, extra costs, and unnecessary stress.
Company directors, sole traders, contractors, short trading histories, a dip in profits, capital raising, a previous decline: we’ve handled them all. If your case feels too complex, talk to us first.
We will review your situation, speak to lenders on your behalf, and tell you honestly what is possible. No guesswork. No wasted applications. We advise by phone, so wherever you are in the UK, we can help.
☎️ Call us today 01257 543013 for a no obligation chat
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage. Consolidating debts into a mortgage may mean you pay more interest overall, because the debt is spread over a longer period. Taking a longer mortgage term also means you may pay more interest in total, unless you overpay to reduce it.
