Hinckley and Rugby Building Society has updated its product and criteria, the details are below. These products are available through our direct to lender mortgage club so contact us for more information on how our club can support your business.
Using Income Flex to support a self‑employed applicant through a major life change
Income Flex remains one of our most popular ranges with brokers, particularly for self‑employed clients whose latest accounts don’t always tell the full story.
Our flexible criteria allows the use of projected income, supported by an accountant’s reference, provided the applicant can evidence a minimum of 12 months’ trading. This can make a real difference for clients experiencing change while still demonstrating strong future earning potential.
This week, we’re sharing a real-life approved case that shows exactly how this approach works in practice, and how Income Flex can help you deliver positive outcomes for your self-employed clients.
Last week we introduced three new Income Flex products up to 95% LTV and reduced rates on our fixed 2-Year and 5-Year Income Flex products.
THE CHALLENGE
A self‑employed applicant recently separated from his wife, who had been a 50% shareholder in his business. He needed to raise capital for personal purposes, but his most recent accounts didn’t yet reflect the significant growth his business was about to experience.
THE OPPORTUNITY
The applicant has recently secured a major new contract expected to more than double his profits for the coming year and beyond. With three months still to go before his year end, he needed to rely on projected figures. These were verified by a qualified accountant. This is exactly where Income Flex proved the ideal solution.
OUR SOLUTION
Once his ex‑partner was formally removed from the business, we were able to assess the case using 100% of the projected net profit. This allowed us to take a forward‑looking view of his true earning potential rather than relying solely on historic accounts. Case approved at 73% LTV and 3.8% LTI.