Case Study: Tech Startup Founder Secures Mortgage Despite Low Historic Income
DIRECTOR AND MORTGAGE ADVISER
Overview
Our client, the founder and CEO of a tech startup, had reached a breaking point. With young children and an overcrowded home, he was ready to move but had repeatedly been told he didn’t qualify for a mortgage. Other advisers had categorised him as self-employed, meaning lenders would only consider two years of low historical earnings — far below what he needed to borrow.
The Challenge
Like many early-stage founders, he had paid himself minimally in the early years while the business reinvested in growth. Though the company was not yet profitable, it had recently completed a major investment round, and he had secured a significant increase to his basic salary. Despite this, other advisers continued to treat him as self-employed — meaning lenders would disregard his new income and base affordability on outdated, low earnings.
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Our Solution
We reviewed his updated shareholding and discovered that his equity stake had dropped to 22% following recent investment. Some lenders consider individuals self-employed if they own more than 20%, but others use a 25% threshold. We identified lenders that use the 25% definition, allowing us to reclassify him as a PAYE employee. That meant we could base the mortgage on his new salary — and only needed one payslip to evidence affordability.
The Outcome
We secured the borrowing he needed based on his new PAYE income, without waiting years to build up a track record. He was able to move his family into a more suitable home straight away. A simple reclassification made all the difference — and avoided unnecessary delays.
What Our Clients Say
What We Can Do for You
If you’re a founder, director, or entrepreneur, don’t settle for generic advice. Shareholding thresholds, definitions of self-employment, and lender criteria vary — and getting it wrong could block you from borrowing. We know how to structure your application to reflect your true income and unlock the right mortgage at the right time.
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YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
Kite Mortgages is a trading style of Kite Financial Ltd which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
APPROVED BY THE OPENWORK PARTNERSHIP ON 27/06/2025