Heron Financial arranged a £260,000 remortgage at 84% LTV for joint clients in Sheffield, one working in events and venue management, the other a self-employed business owner and director, releasing equity from a three-bedroom semi-detached family home valued at £310,000. The case combined a capital raise into the higher-LTV pricing tier 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 Sheffield, owners of a three-bedroom semi-detached family home worth £310,000. One applicant works in events and venue management, a PAYE role in the events sector. The other runs their own business as a self-employed director. They came to Heron Financial wanting to remortgage and release some of the equity they had built up in the property for a specific purpose.
The case had two layers of complication that needed careful handling: the capital raise itself, which would take the LTV up to around 84%, just inside the 85% LTV pricing tier, and the self-employed income assessment for the business owner applicant, which is structurally different from PAYE income assessment.
The case at a glance
- Clients: Joint applicants, one employed (events / venue management), one self-employed (business owner / director)
- Nationality: British
- Occupations: Events and venue management professional + self-employed business owner / director
- Property type: Three-bedroom semi-detached house
- Location: Sheffield
- Current property valuation: £310,000
- New mortgage amount: £260,000
- LTV against current valuation: 83.87% (just inside the 85% 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 at higher LTV combines two things that each tighten the lender market, and stacked together, they tighten it further.
Capital raise into the 85% LTV pricing tier. Lender pricing improves in steps, at 80%, 75% and 60% LTV in particular. The case landed at 83.87% LTV, just inside the 85% LTV pricing tier. That’s a meaningfully more expensive band than 80% or 75%, and the lender market, while still wide, is more selective on capital raise cases at higher LTVs than on like-for-like remortgages.
Self-employed income assessment. The business owner applicant’s income is assessed differently from PAYE: limited company directors are typically assessed on salary plus dividends (or salary plus share of net profit, depending on the lender); sole traders on net profit from SA302s averaged over the last two years. The same accounts can produce a noticeably different “lender-acceptable” income figure depending on the lender’s approach.
Mixed income on a joint application. With one employed and one self-employed applicant, the affordability calculation has to combine both income types cleanly. Some lenders treat them as straightforwardly additive; others apply different verification standards to each side. Lender choice can affect the borrowing capacity.
Capital raise purpose. Lenders ask why borrowers want to release equity, and the answer affects how the case is underwritten. Common acceptable purposes, home improvements, debt consolidation, business support, family gifting, are routine. Some purposes (e.g. business investment, gambling-related debt) face tighter criteria.
The events sector income shape. Events and venue management roles often include variable elements, performance pay, weekend uplifts, on-call premiums, seasonal patterns. How a lender treats variable PAYE income matters when the affordability is being assessed at a higher loan size.
How Heron Financial approached the recommendation
The Heron adviser focused on income assessment first, then lender fit, then product choice.
Self-employed income evidence. Heron Financial worked through the business owner’s income evidence, SA302s, accounts, salary and dividend statements as relevant, so each shortlisted lender’s affordability calculation could be run accurately. Different lenders produce different income figures from the same documents.
Events sector income assessment. The adviser confirmed how the chosen lender would treat the events applicant’s basic pay and any regular variable elements (weekend rates, performance pay, seasonal patterns).
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.
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, clean treatment of mixed employed and self-employed joint applications, and workable policy on capital raise at higher LTVs. They’re not available direct to the public, which is part of the practical reason broker-led placement on mixed-income capital raise cases matters.
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 makes household budgeting easier even in quieter trading or seasonal months.
The outcome
The remortgage completed in May 2026. The clients now have:
A £260,000 mortgage at 84% 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 capital raise case with a broker-only specialist lender
The self-employed income assessed cleanly and to the household’s strongest advantage
What this means for buyers in a similar position
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, even at higher LTVs. But lender choice matters more than it would on a dual-employed case at lower LTV. Self-employed income is assessed differently by different lenders, and the same SA302s or company accounts can produce a borrowing range that varies meaningfully across the high street. Broker-only lenders like Accord 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 direct to your own bank by default.
FAQs
Can a self-employed person get a remortgage with capital raise at higher LTV?
Yes. Self-employed applicants, sole traders, partners, limited company directors, can access remortgages with capital raise at LTVs up to 85% and sometimes higher, 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.
Is 85% LTV a workable band for a remortgage with capital raise?
Yes, though it’s a more expensive pricing tier than 80%, 75% or 60% LTV. Lender choice tightens slightly at 85% on capital raise cases compared to like-for-like remortgages, but several mainstream and broker-only lenders are open for business at this level. The right lender depends on income shape, purpose of the capital raise and credit profile.
Why might my remortgage end up with a broker-only lender like Accord?
Broker-only lenders aren’t available direct to the public. Accord (part of the Yorkshire Building Society Group) is well-known for clean criteria on self-employed income, joint mixed-income households, and capital raise cases. Brokers use them regularly because the criteria are clear and consistent, and on cases like mixed-income capital raise, they often deliver stronger outcomes than direct-to-the-public lenders.
Can I use a remortgage to release equity for any purpose?
Most common purposes, home improvements, debt consolidation, family gifting, school fees, business support, are routinely accepted. Some purposes (business investment, speculative investment, gambling-related debt) face tighter lender criteria or outright restrictions. Being upfront with your adviser about the actual purpose makes the application much smoother.
