Heron Financial arranged a £270,000 remortgage at 62% LTV for joint clients in South London, one working in engineering inspection (employed) and the other a self-employed fitness professional, releasing equity from a two-bedroom terraced house valued at £434,000. The case combined a remortgage with capital raise structure with the income assessment requirements of a self-employed applicant. Heron Financial placed the case with Accord Mortgages, and the remortgage completed in May 2026.
The clients
The clients were a couple in South London, owners of a two-bedroom terraced house worth £434,000. One applicant works in engineering inspection, a steady employed PAYE role. The other is a self-employed fitness professional, running their own work as a sole trader or company. They came to Heron Financial wanting to remortgage and release some of the equity they had built up in the property over time.
The case had two layers of complication that needed handling cleanly: the capital raise itself (with lender questions about purpose and affordability on the higher loan amount), and the self-employed income assessment for the fitness professional applicant, which is structurally different from PAYE income assessment.
The case at a glance
- Clients: Joint applicants, one employed (engineering inspection), one self-employed (fitness professional)
- Nationality: British
- Occupations: Engineering inspection professional + self-employed fitness professional
- Property type: Two-bedroom terraced house
- Location: South London
- Current property valuation: £434,000
- New loan amount: £270,000
- LTV against current valuation: 62.23% (comfortably inside the 75% pricing tier)
- Transaction type: Remortgage with capital raise
- Lender: Accord Mortgages
- Repayment method: Capital and interest
- Completion: May 2026
The challenge
A remortgage with capital raise on mixed income needs handling carefully across three fronts:
Self-employed income assessment. Self-employed applicants, whether sole traders or limited company directors, have income assessed differently from PAYE workers. Sole traders are assessed on net profit from SA302s and tax year overviews, typically averaged over the last two years (or the latest year if lower; sometimes the latest year if higher with the right rationale). Limited company directors are typically assessed on salary plus dividends, or salary plus share of net profit, depending on the lender. The fitness sector is one where many professionals are genuinely self-employed, and the right lender for the case depends on how the income is actually drawn.
Capital raise purpose and affordability. Lenders ask why borrowers want to release equity, and the answer affects how the case is underwritten. The capital raise also has to fit within the lender’s affordability calculation, which now includes the higher loan amount. The combined income (employed + self-employed) needs to comfortably support the new monthly payment.
LTV at 62.23%. The case landed comfortably inside the 75% LTV pricing tier, with strong equity headroom. On capital raise cases at sub-75% LTV, the wider lender market is generally open, provided the income assessment and purpose work.
Joint application structure. Both applicants on the mortgage means both are on the title, both share legal and credit responsibility, and both incomes contribute to affordability. The lender’s combined income approach (and how the self-employed element specifically is included) drives the outcome.
Mortgage portability and onward planning. A remortgage with capital raise is also a chance to reset the mortgage structure, product type, length, repayment method, term, to fit the household’s current and forward-looking plans. The advice covered more than just the headline rate.
How Heron Financial approached the recommendation
The Heron adviser focused on three things: the self-employed income evidence, the capital raise documentation, and the lender fit.
Self-employed income evidence. Heron Financial worked through the fitness professional’s income evidence, SA302s, tax year overviews, accounts as relevant, so each shortlisted lender’s affordability calculation could be run accurately. Different lenders produce different “lender-acceptable” income figures from the same documents.
Capital raise purpose documented up front. The reason for releasing equity was confirmed with the application from the start, so underwriting didn’t slow down asking the question later. Common acceptable purposes (home improvements, debt consolidation, family gifting, business support) are routine; getting the purpose right and documented up front keeps the case clean.
Lender choice. Accord Mortgages was the right home for this case. Accord is a broker-only lender, part of the Yorkshire Building Society Group, with well-regarded criteria for self-employed income and clean treatment of mixed employed / self-employed joint applications. They’re competitive at the mid-LTV tier and process cases cleanly. Crucially, they’re not available direct to the public, which is part of the practical case for broker-led placement on mixed-income cases.
Product choice. A fixed rate gave the clients payment certainty on the new (larger) loan. For mixed-income households where one income is variable by nature, payment certainty has particular value, it makes household budgeting easier even in quieter trading months for the self-employed partner.
The outcome
The remortgage completed in May 2026. The clients now have:
A £270,000 mortgage at 62% LTV against the current valuation
A fixed rate on capital and interest repayment
The equity release deployed for the agreed purpose
A clean placement on a mixed-income profile with a broker-only specialist lender
Strong pricing in the 75% LTV tier with meaningful equity headroom
What this means for buyers in a similar position
If you’re upsizing into a higher-If you’re a couple where one of you is employed PAYE and the other is self-employed, remortgaging with a capital raise is genuinely workable, but lender choice matters more than it would on a dual-employed case. Self-employed income is assessed differently by different lenders, and the same SA302s can produce a borrowing range that varies meaningfully across the high street. Broker-only lenders like Accord, who don’t lend direct to the public, often have the cleanest criteria for self-employed income, which is one of the practical reasons broker advice gives you access to a wider lender market than going to your own bank by default.
FAQs
Can a self-employed person get a remortgage with capital raise?
Yes. Self-employed applicants, sole traders, partners, limited company directors, can access remortgages with capital raise, subject to standard self-employed income assessment (typically two years of SA302s or accounts). On joint applications, the self-employed income combines with any employed income from the other applicant for the affordability calculation.
How do lenders assess self-employed income on a remortgage?
For sole traders, lenders use net profit from SA302s and tax year overviews. The standard approach is the average of the last two years, or the latest year if it’s lower. Some lenders use the latest year if it’s higher, with rationale. For limited company directors, lenders typically use salary plus dividends or salary plus share of net profit, depending on the lender’s approach.
What is a remortgage with capital raise?
A remortgage with capital raise means moving your mortgage to a new lender (or restructuring with the same lender) and borrowing more on top of your existing balance. The additional amount is released to you as cash for a defined purpose, commonly home improvements, debt consolidation, family gifting, or business support. The lender will ask the purpose and check it fits their criteria.
Why might my mortgage end up with a broker-only lender like Accord?
Broker-only lenders aren’t available direct to the public, they distribute their mortgages exclusively through regulated brokers and intermediaries. Accord (part of the Yorkshire Building Society Group) is well-known for clean criteria on self-employed income, mixed income households and complex cases. Brokers use them regularly because the criteria are clear and consistent.
Is 62% LTV a good band for a remortgage?
Yes, it’s comfortably inside the 75% LTV pricing tier, one of the more competitively priced bands on the high street. Dropping below 60% LTV typically unlocks the sharpest rates lenders offer, but the benefit between 75% and 60% is incremental. 62% LTV gives a strong combination of pricing and equity buffer.
