Heron Financial arranged a £164,000 product transfer with Santander for Intermediaries for joint applicants led by a self-employed sole-trader landscaper with two years of net profit history. The mortgage sat at approximately 50% LTV against a £327,000 purpose-built flat with a 999-year lease. The new product took effect in January 2025.
The clients
The clients were a couple, with the lead applicant a self-employed landscaper working as a sole trader. They had two years of net profit history on the business and lived in a purpose-built flat with a 999-year lease, valued at £327,000. 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: Self-Employed Landscaper (Sole Trader, 2 years net profit history) plus second applicant
- Property type: Purpose-built flat
- Lease: 999 years
- Property valuation: £327,000
- Loan amount: £164,000
- LTV: Approximately 50%
- Lender: Santander for Intermediaries (existing lender)
- Action: Product transfer to a new fixed product
- New product start date: January 2025
- Repayment method: Capital and interest
The challenge
Two features shaped this case.
1. Sole trader landscaping income. Landscapers, gardeners and other outdoor trade businesses often operate on a seasonal demand pattern, with stronger income through spring and summer and lighter trading through autumn and winter. Lenders read this carefully, particularly for borrowers with shorter trading histories. With two years of net profit history recorded, the case had the standard mainstream minimum, and the lender’s reading of the two years (lower of, most recent, or averaged) drove the affordability outcome.
For a sole trader, income is evidenced through HMRC tax calculations (SA302s), tax year overviews, and sometimes an accountant’s reference. The net profit figure from the self-assessment is the assessable income, before personal tax. This is straightforward in principle but each lender has its own approach to which year’s figures to use.
2. Sub-60% LTV with a long lease. At approximately 50% LTV, the case sat comfortably inside the cheapest mainstream pricing tier. The 999-year lease is essentially freehold equivalent and removes any lease-related lender concern. Combined with the low LTV, the property fundamentals were as clean as they get from a mortgage perspective.
The strategic question for the Heron team was whether a product transfer with Santander or a remortgage to a different lender produced the better outcome. For sole trader borrowers with relatively short trading histories, PT routes often work cleanly because the existing lender already accepted the income at original underwriting and has the history of the mortgage on file. A remortgage to a new lender means fresh underwriting on the trading record, which not every lender will write at two years for a sole trader.
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, which made the PT route the cleaner option here.
How Heron Financial approached the recommendation
The Heron adviser reviewed the clients’ current mortgage position with Santander, considered the lender market for both PT and remortgage routes given the sole trader two-year trading history, and weighed the practical advantages of staying with the existing lender. With Santander’s product range producing a workable outcome and the PT avoiding fresh self-employed underwriting at a new lender, a product transfer was recommended.
Heron Financial managed the PT process through Santander for Intermediaries, the broker channel of Santander UK, 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 Santander’s standard variable rate.
What this means for buyers in a similar position
Sole trader tradespeople running outdoor or seasonal businesses have specific considerations at mortgage time. A few practical points worth knowing.
Sole trader income is evidenced through HMRC tax calculations. SA302s and tax year overviews from HMRC are the standard evidence base, sometimes supported by an accountant’s reference. The net profit figure from self-assessment is the assessable income.
Two years of trading is the typical minimum. Most mainstream lenders want at least two years. Some accept one year. Specialist lenders are sometimes more flexible. The borrower’s trading history shapes the realistic lender shortlist.
Lenders read profit variation differently. Some take the lower of two trading years. Some use the most recent year. Some average across the trading history. The right placement depends on the income shape and the lender’s policy.
Product transfers often work cleanly for shorter-history self-employed borrowers. Because the PT doesn’t reassess income in the same way as a remortgage to a new lender, sole traders with two or three years of accounts often find the PT route smoother at product end than attempting a remortgage to a different lender.
Seasonal businesses still mortgage cleanly. Lenders are familiar with seasonal income patterns in landscaping, gardening, hospitality and other outdoor trades. The headline annualised profit is what matters for affordability, and broker advice helps match the case to a lender comfortable with the pattern.
FAQs
Can a self-employed landscaper get a mortgage?
Yes. In this Heron Financial case, a self-employed sole-trader landscaper with two years of net profit history secured a £164,000 product transfer with Santander for Intermediaries at approximately 50% LTV. Lender appetite for outdoor trade businesses is generally good when income evidence is in place.
How do lenders treat seasonal income?
Most mainstream lenders are familiar with seasonal income patterns in trades like landscaping, gardening, hospitality and outdoor services. The headline annualised net profit from self-assessment is what matters for affordability, rather than month-by-month income flows.
How is sole trader income assessed?
Through HMRC tax calculations (SA302s) and tax year overviews, sometimes supported by an accountant’s reference. The net profit figure from self-assessment is the assessable income. Most lenders want at least two years’ trading history
Is Santander good for sole trader mortgages?
Santander for Intermediaries is the broker channel of Santander UK, one of the major UK mainstream lenders, and is regularly considered for self-employed cases including sole traders. 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.
Is a product transfer easier than a remortgage for self-employed borrowers?
Often, yes. A PT with the existing lender doesn’t reassess income in the same way a remortgage to a new lender does. For self-employed borrowers, particularly those with shorter trading histories, the PT route can be the simpler option at product end.
