Heron Financial arranged a £417,000 product transfer with Coventry for Intermediaries (Godiva Mortgages) for joint applicants, combining a senior PAYE income with a limited company consultancy in its first year of trading. The mortgage sat at approximately 70% LTV against a current valuation of £597,000 , with the second applicant not currently in paid employment. The new product took effect in January 2025.
The clients
The clients were a couple, with one applicant working as a senior employed director on a high PAYE salary and recently setting up a self-employed consultancy through a limited company with one year of trading. The second applicant was not currently in paid employment. They lived in a terraced home originally bought for £549,000 and now valued at around £597,000. 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
- Borrowers: Joint applicants
- Occupations: Senior PAYE Executive with a Self-Employed Consultancy via Ltd Company (1 year trading); second applicant not currently in paid employment
- Property type: Terraced house
- Original purchase price: £549,000
- Current valuation: £597,000
- Loan amount: £417,000
- LTV: Approximately 70% against current valuation
- Lender: Coventry for Intermediaries / Godiva Mortgages (existing lender)
- Action: Product transfer to a new fixed product
- New product start date: January 2025
- Repayment method: Capital and interest
Why this case mattered
Three features shaped this case.
1. One year of trading on the consultancy. Most mainstream lenders require at least two years of self-employed accounts before they will use limited company consultancy income on a mortgage application. A handful accept one year, often with specific conditions, but the lender shortlist for one-year trading is narrow. For a remortgage to a new lender, a one-year-old limited company consultancy might be excluded from the affordability picture entirely, the lender would underwrite on PAYE income alone. For a product transfer with the existing lender, where the original mortgage was already in place and the loan had been previously approved, this is much less of a concern. The PT route avoids the fresh underwriting that would otherwise restrict the case.
2. Senior PAYE income as the foundation. With the consultancy still new, the senior PAYE income carried the affordability picture. High-earner PAYE income is well-treated by mainstream lenders, particularly at moderate LTVs. The consultancy income, where it can be considered, becomes additive rather than essential. Heron Financial’s role was matching the case to a lender that would either accept the PAYE income comfortably for the borrowing required, or take a sensible view of the new consultancy where relevant.
3. Joint application with a non-working spouse. With the second applicant not currently in paid employment, affordability rested entirely on the lead applicant’s income. Joint applications of this shape are entirely workable; the non-earning applicant goes onto the mortgage and property title alongside the earning one, while affordability is assessed on the working applicant’s income alone.
For the existing lender, Coventry for Intermediaries (the broker channel of Coventry Building Society, with mortgages branded as Godiva), the case continued to fit comfortably at the new product end. The PT route avoided the complications that a remortgage to a different lender might have introduced given the new consultancy.
How Heron Financial approached the recommendation
The Heron adviser reviewed the clients’ current mortgage position with Coventry/Godiva, considered the lender market for both PT and remortgage routes given the one-year consultancy trading history, and weighed the practical advantages of staying with the existing lender. With the senior PAYE income comfortably supporting the borrowing required and the consultancy still in its first year, a product transfer was recommended.
Heron Financial managed the PT through Coventry for Intermediaries / Godiva Mortgages, securing the new product to take effect in January 2025.
The outcome
The new product took effect in January 2025. The clients moved onto a new fixed rate without a gap, avoiding any drift onto Coventry’s standard variable rate.
What this means for buyers in a similar position
For senior PAYE earners who have recently set up a limited company consultancy on the side, the mortgage market splits sharply at product end. Lenders who accept one year of self-employed trading are scarce, and those that do often have specific conditions. Lenders who require two or three years are far more common. This shapes the practical choice between a PT and a remortgage.
A few useful points to know:
A PT with the existing lender doesn’t reassess income in the same way as a remortgage. The existing lender approved the loan originally and is offering a new product on the same loan. Some affordability rules still apply, but the level of fresh income evidence is typically lighter than for a remortgage to a new lender.
Senior PAYE income often carries the case alone. When the PAYE income is strong enough to support the borrowing, the new consultancy income becomes additive rather than essential. This often gives more lender choice than a borrower expects.
Time matters for the next remortgage. A consultancy in its first year today will be in its third or fourth year by the time of the next remortgage. By that point, the income will be evidenced through multiple years of accounts and the lender market will be much wider. The PT now is a sensible step that keeps options open for later.
Joint applications work with one non-earning partner. The non-earning applicant goes onto the mortgage and property title; affordability rests on the working applicant’s income.
FAQs
Can I get a mortgage with only one year of self-employed trading?
Yes, but the lender market is narrow. Most mainstream lenders require two or three years of accounts. A handful accept one year, often with specific conditions. In this Heron Financial case, the borrower stayed with the existing lender on a product transfer, which avoided fresh underwriting on the one-year consultancy.
Should I do a product transfer if my limited company is new?
Often yes. A PT with the existing lender doesn’t reassess the income picture in the same way as a remortgage to a new lender. For borrowers whose income shape has changed since the original mortgage, including those with new consultancies or recently set up Ltd companies, the PT route is often the cleaner option until the new income has built up enough trading history.
How is consultancy income from a new limited company assessed?
Lender approaches vary. Some won’t use the income at all until two or three years of accounts are in place. Some accept one year with specific conditions (typically requiring strong PAYE income alongside, an SA302, and an accountant’s reference). The right lender depends on the borrower’s specific income picture.
Can my partner be on the mortgage if they're not currently in paid employment?
Yes. The non-earning partner goes onto the mortgage and the property title alongside the earning applicant. Affordability is assessed on the working applicant’s income. In this Heron Financial case, joint applicants completed a product transfer where one applicant carried all the household income and the other was not currently in paid employment.
Is Coventry Building Society good for self-employed mortgages?
Coventry for Intermediaries (the broker channel of Coventry Building Society, with mortgages branded as Godiva) is regularly considered for residential cases including those with self-employed income alongside PAYE. 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.
