Tech Startup Founder Secures Mortgage Despite Low Historic Income
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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continued to treat him as self-employed — meaning lenders would disregard his new income and base affordability on outdated, low earnings.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 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.
Read our full guide to mortgages for tech leaders and founders →
Request your fee free mortgage consultation today. No obligation, just sound advice.
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YOUR HOME MAY BE REPOSESSED IF YOU DON’T KEEP UP REPAYMENTS ON YOUR MORTGAGE
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APPROVED BY THE OPENWORK PARTNERSHIP ON 27/06/2025