Case Study: A £93,000 Difference in Borrowing – Why the Right Advice Matters for Self-Employed Buyers

Many self-employed buyers assume that once they’ve been told how much they can borrow, that’s the end of the story.

In reality, borrowing capacity can vary significantly depending on how a lender assesses your income.

In this case study, a self employed first time buyer couple were initially told they could borrow just £268,000. By reviewing their circumstances, working alongside their accountant and selecting a lender whose criteria better suited their situation, borrowing potential increased to approximately £361,000.

That’s a difference of £93,000.

The Challenge

The couple were looking to buy their first home and had:

• A £60,000 deposit
• Combined income of around £65,000
• Clean credit history
• No unsecured debt

Their preferred location had properties typically priced between £375,000 and £425,000.

Unfortunately, previous advice suggested they could only borrow around £268,000, making many of those properties unaffordable.

The issue wasn’t their deposit of their credit profile.

It was the way the self employed income was being assessed.

Why Was the Borrowing So Different?

One applicant was self employed and about to submit their latest tax return.

Some lenders assess self employed applicants using an average of the last two years’ income.

Others may consider the latest year’s figures where appropriate, while some will assess company income differently depending on the business structure and supporting evidence available.

That means two lenders can look at exactly the same business and arrive at very different borrowing figures.

Neither approach is necessarily wrong.

They’re simply applying different lending criteria.

Looking Beyond the First Answer

Using the available information, affordability already appeared stronger than the original borrowing figure suggested.

Once the latest income figures were available and the most appropriate lender had been identified, borrowing capacity increased to approximately £361,000.

That completely changed the clients’ property search.

Instead of being limited to considerably lower priced homes, they were now able to view the type of properties they originally hoped to buy.

The difference?

£93,000 in additional borrowing capacity.

The clients hadn’t changed and neither had their income or business.

Only the way their income was assessed.

It’s About More Than Borrowing More

The objective isn’t simply to maximise borrowing.

It’s about finding a mortgage that supports both current affordability and future flexibility.

In this case, we also discussed using a longer mortgage term to improve affordability.

A longer term doesn’t mean the mortgage has to last that long.

Many lenders allow overpayments (subject to their terms and conditions), meaning borrowers may be able to reduce the mortgage balance more quickly if their circumstances allow, while still benefiting from the increased affordability a longer term can provide.

For many first time buyers, that flexibility can make a significant difference.

Final Thoughts

Self employed mortgages are rarely straightforward.

Different lenders assess income in different ways, particularly where business owners are waiting for their latest accounts or have changing levels of income.

Sometimes the borrowing figure you’ve been given isn’t incorrect.

It’s simply based on a different interpretation of the same income.

Obtaining specialist advice before changing your remuneration or paying additional tax could help you understand all of the options available.

Regulatory Disclosure

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances.

Symmonds de Lacey is a trading style of Easy Street Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority.

Please note that we are not tax advisers. Tax advice should always be obtained from a suitably qualified accountant or tax adviser.

Information correct at time of writing – July 2026