Chloe and Sarah have always cherished their childhood home, but they were ready to take their next step towards independence together. Chloe, a self-employed cyber security consultant, had the flexibility to live at home, while Sarah faced challenges due to her deteriorating health, relying on Disability Living Allowance and Universal Credit to support their household.
Despite their determination to move out, they were worried about navigating the complexities of the housing market, especially with traditional lenders. Chloe’s bank told her that she’d need to provide three years’ accounts to assess her affordability, by averaging her income, which didn’t align with her need to stay close to her family in a desirable area.
Left feeling disappointed, Chloe and Sarah sought the help of local broker, John, to get some advice and guidance on a lender who may accept their unique circumstances for a mortgage.
John was familiar with using Pepper to help his just-off-high-street customers and had built up a relationship with his regional underwriter throughout his previous applications with us. John’s experience with Pepper allowed him to leverage Chloe’s most recent year’s financial accounts to enhance her affordability assessment, rather than averaging three years of income.
What’s more, Chloe’s affordability was boosted by additional income, like her car allowance, pension contributions and use of her home office. As well as this, 100% of the company is owned by her so we can take 100% of the net profit into account.
Plus, additional income from Universal credit and Disability allowances was accepted for Sarah to help increase their borrowing potential further.
Our inclusive criteria and diverse product range allowed customers like John’s, who often get overlooked by high street lenders, to fulfil their mortgage ambitions. When the high street lenders say no, let us be your first choice for your self-employed customers.
“We’re so grateful to John and Pepper for recognising our potential and helping us to boost our affordability. Purchasing a property whilst I’m self-employed and my sisters on Universal Credit was daunting, but Pepper allowed us to purchase a home near our family, within our budget. Thanks for much for helping us become homeowners.”
Chloe and Sarah
BUSINESS DEVELOPMENT
There’s a range of support available to our intermediaries, including our experienced team of BDMs, and direct access to a Case Owner that helps make lending decisions.
Key Criteria
One year’s self-employed trading or most recent year’s accounts accepted
We could boost your customers’ borrowing potential when they own 100% of the company, including car allowance, pension contributions and private health insurance
Up to 100% net profit accepted
Service
Supported by:
No painstaking paper work
Direct access to underwriters
Less time consuming process
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Case study summary
- Chloe is self-employed and Sarah contributes to their household through her receipt of Disability Living Allowance and Universal Credit, which offered essential financial support.
- Chloe and Sarah needed a lender who can see the full story and take more of their income into consideration. In the last year, Chloe’s company has experienced a significant increase in turnover. They both earn complex income so needed a lender who could accept this.
- Pepper calculated affordability using Chloe’s latest year’s accounts, and added additional income too. Chloe’s benefit income was also accepted to further increase their maximum borrowing enabling them to purchase their home on our cheapest tier.
CASE STUDIES
A little further reading
on how you can help your just-off-high-street customers
A Pepper Money case study – Interest Only
A Pepper Money case study – Self Employed
A Pepper Money case study – Concessionary Purchase
