Heron Financial arranged a £285,000 product transfer with Halifax Intermediaries for a solo borrower combining a Company Director role with separate contracting income carrying four years of trading history. The mortgage sat at approximately 71% LTV against a £399,000 semi-detached home, 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 income streams: a Company Director role and separate contractor work with four years of trading history behind it. They lived in a semi-detached home originally purchased for £405,000 through Help to Buy, with a current valuation of £399,000. 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: Company Director with concurrent Contracting income (4 years trading)
- Property type: Semi-detached house
- Original purchase price: £405,000
- Current valuation: £399,000
- Loan amount: £285,000
- LTV: Approximately 71%
- 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. Dual self-employed income streams. A Company Director role and a separate contracting business are two distinct income types from a lender’s perspective. Director income is typically drawn as salary plus dividends from a Limited company, sometimes with retained profit considered. Contractor income is assessed using day-rate calculations or accounts depending on the lender’s policy. When both streams sit on the same application, lenders have to decide how to read the combined picture. Some combine cleanly. Some apply caps on one or the other. Some use only one stream for affordability and treat the other as positive context. The right placement depends on the borrower’s specific income shape and the lender’s approach.
2. Four years of contracting history. Most mainstream lenders want at least two years of self-employed accounts. Four years is a solid history that gives lenders a stable view of the contracting income, particularly important when it sits alongside a directorship that may itself have variable trading patterns.
3. Help to Buy context. The home 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 71% LTV sat in the mid-range bracket where most major lenders compete actively but rates step up a notch from the cheapest sub-60% LTV tier. 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 dual-income picture from the original underwriting, which simplified the process and avoided fresh income presentation to a new lender’s underwriters.
How Heron Financial approached the recommendation
The Heron adviser reviewed the client’s current mortgage position with Halifax, assessed the combined director plus contractor income picture across the four years of contracting 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 complications of re-presenting dual-income to a new lender, 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
Portfolio professionals, borrowers who combine a directorship with contracting, consultancy or freelance work, are an increasingly common borrower segment that mainstream mortgage content rarely addresses. A few practical points worth knowing.
Lenders read dual self-employed income differently. Some lenders combine both streams. Some prioritise one over the other. Some apply specific rules on income volatility across the streams. The right placement depends on the borrower’s specific income shape.
Trading history on both sides matters. With both income streams being self-employed, lenders typically want trading evidence on each. Four years on the contracting side, as in this case, is a solid foundation. The director side benefits from a stable accounts trail too.
The mid-LTV bracket is competitive. Around 70% LTV sits comfortably in the bracket where most major lenders compete, though rates step up slightly from the cheapest sub-60% LTV tier. Lender choice on rate has more impact at higher LTVs.
PT versus remortgage benefits from advice on dual self-employed 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'm both a company director and a contractor?
Yes. In this Heron Financial case, a solo borrower combining a Company Director role with separate contracting income secured a £285,000 product transfer with Halifax Intermediaries at approximately 71% LTV. Lender treatment of dual self-employed income streams varies, which is where broker advice matters most.
How do lenders treat multiple self-employed income streams?
Approaches vary. Some lenders combine the streams cleanly. Some prioritise the more stable income source. Some apply caps on secondary income. The right placement depends on the borrower’s specific income shape and the lender’s policy.
Is four years of contracting enough trading history for a mortgage?
Yes. Most mainstream lenders want at least two years of self-employed accounts. Four years gives lenders a solid view of the income and is well above the typical minimum.
Is Halifax good for self-employed mortgages?
Halifax Intermediaries is the broker channel of Halifax, one of the major UK mainstream lenders, and is regularly considered for self-employed cases including those combining directorship and contracting 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.
