Heron Financial arranged a £239,000 product transfer with Halifax Intermediaries for a solo borrower combining a Limited company contracting business with a concurrent PAYE finance consultant role. The mortgage sat at approximately 47% LTV against a £506,000 purpose-built flat with a 250-year lease, originally purchased through Help to Buy. The new product took effect in January 2025.
The client
The client was a solo borrower with two distinct concurrent income streams: a contracting business operated through a Limited company they fully owned, with five years of trading accounts, alongside a PAYE finance consultant role. They lived in a purpose-built flat with a 250-year lease, originally purchased through Help to Buy. With the existing fixed rate coming to an end, they came to Heron Financial for advice on the right next step.
The case at a glance
- Borrower: Solo applicant
- Occupations: Self-Employed Contractor (via Ltd Company, 100% shareholder, 5 years trading) and concurrent PAYE Finance Consultant
- Property type: Purpose-built flat
- Lease: 250 years
- Property valuation: £506,000
- Loan amount: £239,000
- LTV: Approximately 47%
- Lender: Halifax Intermediaries (existing lender)
- Action: Product transfer to a new fixed product
- New product start date: January 2025
- Repayment method: Capital and interest
The challenge
Three features shaped this case.
1. Contractor income through a Limited company. Contractors operating through their own Limited companies occupy a specific underwriting category. Income is typically drawn as a combination of salary and dividends, sometimes with retained profit considered by certain lenders. Some lenders use the day-rate method (day-rate multiplied by working weeks); others use accounts and tax returns. With five years of trading, the underlying evidence base was strong.
2. Concurrent PAYE finance consultant role. When a contractor also holds a PAYE role at the same time, lenders have to decide how to combine the two income streams. Some lenders are comfortable adding both. Some apply caps on secondary income. Some treat the application as primarily one or the other. The right placement depends on which lender’s policy handles concurrent dual-income applications most fairly.
3. Help to Buy context. The flat was originally purchased through Help to Buy. HTB borrowers face specific considerations at the end of their initial fixed period: whether to product transfer, whether to remortgage to a lender that accepts ongoing HTB equity loans, and whether to repay the HTB equity loan if circumstances allow. The right route depends on the household’s wider plans and the lender market at the time.
The 47% LTV positioning sat comfortably inside the sub-60% LTV bracket where the cheapest mainstream rates live, which gave more competitive product options than a higher-LTV case. The choice between a PT with Halifax and a remortgage to a different lender still benefited from comparison, particularly given the dual-income complexity.
For a product transfer with the existing lender, the affordability rules aren’t fully reassessed in the way they are on a remortgage to a new lender. Halifax already understood the borrower’s income picture from the original underwriting, which simplified the process.
How Heron Financial approached the recommendation
The Heron adviser reviewed the client’s current mortgage position with Halifax, assessed the combined contractor plus PAYE income picture across the five years of trading history, and considered the lender market for both PT and remortgage routes. With Halifax’s product range producing a workable outcome and the PT route avoiding the need to re-present the dual-income picture to a new lender’s underwriters, a product transfer was recommended.
Heron Financial managed the PT process through Halifax Intermediaries, securing the new product to take effect in January 2025.
The outcome
The new product took effect in January 2025. The client moved onto a new fixed rate without a gap, avoiding any drift onto Halifax’s standard variable rate.
What this means for buyers in a similar position
Concurrent contractor and PAYE income is a less common income shape but not a rare one, particularly in finance, technology and professional services where contracting and employment can run in parallel through different engagements. A few practical points worth knowing.
Lenders read concurrent income differently. Some combine both streams cleanly. Some apply caps on the secondary stream. Some only use the primary income. The right lender depends on the specific income shape and the borrower’s primary source.
Trading history on the Ltd company side is the harder evidence. PAYE income is straightforward to evidence through payslips and an employer reference. Contractor income through a Ltd company requires accounts, SA302s and sometimes an accountant’s reference. Two or three years of trading is the typical minimum; five years, as in this case, is well above and gives lenders a settled view.
The PAYE element adds stability. When a contractor also has PAYE income, the combined picture is usually more comfortable for lenders than pure contractor income alone. Even when the lender only uses one stream for affordability, the existence of the other is positive context.
PT versus remortgage benefits from advice on dual-income cases. The existing lender’s product range may or may not be the best deal across the wider market. For borrowers with complex income shapes, the comparison is particularly worthwhile.
FAQs
Can I get a mortgage if I have both contractor income and a PAYE job?
Yes. In this Heron Financial case, a solo borrower with both Ltd company contractor income and a concurrent PAYE finance consultant role secured a £239,000 product transfer with Halifax Intermediaries at approximately 47% LTV. Lender choice depends on how each lender handles concurrent income streams.
How do lenders treat concurrent contractor plus PAYE income?
Approaches vary. Some lenders combine both streams cleanly. Some apply caps on the secondary stream. Some only use the primary income. The right placement depends on the borrower’s specific income shape and the lender’s policy at the time.
Is five years of contracting enough trading history for a mortgage?
Yes. Most mainstream lenders want at least two or three years of self-employed accounts. Five years is well above that threshold and gives lenders a settled view of the income.
Is Halifax good for contractors?
Halifax Intermediaries is the broker channel of Halifax, one of the major UK mainstream lenders, and is regularly considered for contractor cases including those with concurrent PAYE income. Heron Financial assesses every case on its merits and selects a lender based on affordability, product pricing, criteria fit and service standards at the time of application.
What happens to my Help to Buy mortgage when the fixed period ends?
HTB borrowers have several options: a product transfer with the existing lender, a remortgage to a lender that accepts ongoing HTB equity loans, or repaying the HTB equity loan if circumstances allow. The right route depends on the household’s wider plans and the lender market at the time.
