Blog

Businessman Making Decision Between Approval and Rejection Options

Being refused a mortgage can feel like a dead end — but at Mortgage321, we see it as the start of a new opportunity. Many of our clients first come to us after being declined by a high street lender, often through no fault of their own. Whether it’s due to credit issues, complex income, or affordability concerns, our role is to find a way forward — turning “no” into “let’s make it happen.”<h3>Why Mortgage Applications Are Refused Mortgage refusals can happen for a variety of reasons, including:</h3><ul><li>Adverse or limited credit history – missed payments, defaults, or historic CCJs. </li><li>Complex income – self-employed applicants, limited company directors, or those with multiple income sources. </li><li>Affordability concerns – where mainstream lenders’ criteria are too restrictive. </li><li>Unusual property types – non-standard construction, mixed-use, or HMO properties. </li><li>High loan-to-value (LTV) borrowing – when the deposit or equity position is tight. </li></ul>Mainstream lenders often rely on automated systems that can’t account for your full circumstances. At Mortgage321, we take the time to understand the story behind your application and present it clearly to a lender who can see your true potential.<figure id="figure-s5aiq1fdxymhmabswt"><img id="s5aiq1fdxymhmabswt" src="https://media.gettyimages.com/id/2199197679/photo/two-students-man-and-woman-use-laptop-for-prepare-exam-at-home.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=6_zKn5aUMPVOXzZ-BHdI-1W69kOPDBfmKk61TXqjom4=" alt="two students man and woman use laptop for prepare exam at home" title="two students man and woman use laptop for prepare exam at home" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2199197679/photo/two-students-man-and-woman-use-laptop-for-prepare-exam-at-home.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=6_zKn5aUMPVOXzZ-BHdI-1W69kOPDBfmKk61TXqjom4=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>How Mortgage321 Can Help</h3>We specialise in non-conforming mortgage solutions — cases that fall outside the usual lending boxes. With over 30 years of experience in the industry, we know which lenders to approach, how to structure an application, and how to present supporting information in the best possible light.Here’s how we help our clients:1. Tailored Advice from Experienced Specialists We don’t rely on one-size-fits-all answers. Every case starts with a detailed review of your circumstances — income, credit profile, property type, and future goals. From there, we design a strategy specifically for you.2. Access to Specialist Lenders As an independent mortgage broker, Mortgage321 has access to a wide network of lenders, including:<ul><li>Specialist lenders catering to adverse credit /and debt consolidation </li><li>Self-employed and limited company borrower specialists </li><li>Lenders who accept complex property types, such as HMOs, multi-units, and mixed-use buildings </li><li>Providers of bridging finance and short-term lending for those needing time to restructure or raise capital 3. Rebuilding and Repositioning Your Application If you’ve been refused, it doesn’t mean you’re unlendable — it means the previous application wasn’t the right fit. We review the reasons behind your decline, then reposition your case for success. That may include:</li><li>Reviewing your credit report and guiding you on quick improvements </li><li>Adjusting your loan structure or term to improve affordability </li><li>Providing lender-approved explanations for missed payments or temporary credit issues </li></ul>Exploring alternative products, such as bridging or secured loans, to achieve your short-term goals 4. Support Beyond the Mortgage Offer Our commitment doesn’t stop once a lender says “yes.” We help you manage the entire process — from valuation to completion — ensuring your mortgage offer turns into a completed deal. Real Experience, Real ResultsMany of our clients initially felt they had no options left. With our guidance, they’ve successfully secured funding for:<ul><li>Refinancing properties affected by credit issues </li><li>Raising capital for business investment through limited company structures </li><li>Converting commercial buildings to residential use </li><li>Purchasing homes after being previously declined elsewhere </li></ul>Every success story begins with an honest conversation about what’s possible — and that’s where we come in.<figure id="figure-x2ggwc1v6jmhmagirp" class=""><img id="x2ggwc1v6jmhmagirp" src="https://cdn.durable.co/services/1fFbiInIxT8UbEnVmbs3Akb00oIZYfBU4z02cxNIIfZTkshXO3uYtMGL38cAXNSA.jpg" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/services/1fFbiInIxT8UbEnVmbs3Akb00oIZYfBU4z02cxNIIfZTkshXO3uYtMGL38cAXNSA.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>If you’ve been refused a mortgage, don’t give up. The key is not finding any lender, but finding the right lender — and that’s exactly what Mortgage321 does best.📞 Speak to us today for a confidential assessment of your options. We’ll help you rebuild confidence, reframe your application, and move one step closer to your new home or investment.👉 <a data-mce-href="https://mortgage321.co.uk/contact" href="https://mortgage321.co.uk/contact">Get in touch</a> with Mortgage321 or try our <a data-mce-href="https://mortgage321.co.uk/calculators/maximum-borrowing-calculator" href="https://mortgage321.co.uk/calculators/maximum-borrowing-calculator">Mortgage Calculator</a> to start exploring your possibilities.

Refused a Mortgage? How Mortgage321 Can Help You Get Back on Track

Buying your first home is one of life’s biggest milestones—and one of the most exciting financial decisions you’ll ever make. But with today’s complex mortgage market, rising property prices, and evolving lender criteria, knowing where to start can feel overwhelming.At Mortgage321, we’ve helped countless first-time buyers across Colchester and Essex secure the right mortgage—often when other lenders said “no”. Here are our expert tips to help you make informed, confident decisions as you take your first step onto the property ladder.<h3>1. Know What You Can Borrow </h3>Before viewing properties, get a clear picture of your borrowing capacity. Lenders assess affordability using your income, outgoings, credit history, and existing financial commitments.At Mortgage321, we carry out a full affordability assessment for you, explaining how each lender views your application. This helps set realistic expectations and ensures you don’t waste time looking at properties beyond your reach.Tip: Online calculators are a good starting point, but they don’t account for your personal circumstances—always seek tailored advice.<figure id="figure-nib38uczt4mhgik02j"><img id="nib38uczt4mhgik02j" src="https://media.gettyimages.com/id/2177432701/photo/credit-score-concept-businessman-holding-virtual-screen-of-credit-score-icon-for-chart-with.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=lOyKBLS1RJ1vwS7SN3FU23VrEimS6vsFgAvZN0BR7kg=" alt="Credit score concept, businessman holding virtual screen of credit score icon for chart with credit history values. Online credit score ranking check. student loan, mortgage and payment cards." title="Credit score concept, businessman holding virtual screen of credit score icon for chart with credit history values. Online credit score ranking check. student loan, mortgage and payment cards." class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2177432701/photo/credit-score-concept-businessman-holding-virtual-screen-of-credit-score-icon-for-chart-with.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=lOyKBLS1RJ1vwS7SN3FU23VrEimS6vsFgAvZN0BR7kg=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>2. Check and Improve Your Credit Profile </h3>Your credit history plays a vital role in your mortgage approval. Missed payments, defaults, or payday loans can all affect your eligibility and the interest rate you’re offered.We recommend obtaining a full, detailed credit report from CheckMyFile — it combines data from Experian, Equifax, and TransUnion, giving you the most comprehensive overview.If your credit report shows past issues, don’t panic. Mortgage321 specialises in helping clients with adverse credit secure suitable mortgage solutions.&nbsp;<h3>3. Understand the True Costs of Buying </h3>Beyond your deposit, remember to budget for:<ul><li>Solicitor and valuation fees </li><li>Stamp Duty (if applicable) </li><li>Mortgage arrangement and broker fees </li><li>Moving and furnishing costs We’ll provide you with a full breakdown of costs upfront so you know exactly what to expect—no surprises along the way.<figure id="figure-2ai2az93t9mhgiladf" class=""><img id="2ai2az93t9mhgiladf" src="https://media.gettyimages.com/id/1143088970/photo/morgage-or-mortgage-offer-icon-depicting-credit-for-buying-real-estate-3d-illustration.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Uv9I6S4Ck7-m7Z5L_3WUk3Ns4kxIPZA_jz0PRRaMWZ0=" alt="Morgage Or Mortgage Offer Icon Depicting Credit For Buying Real Estate - 3d Illustration" title="Morgage Or Mortgage Offer Icon Depicting Credit For Buying Real Estate - 3d Illustration" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1143088970/photo/morgage-or-mortgage-offer-icon-depicting-credit-for-buying-real-estate-3d-illustration.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Uv9I6S4Ck7-m7Z5L_3WUk3Ns4kxIPZA_jz0PRRaMWZ0=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure></li></ul><h3>4. Consider Government and Lender Support Schemes </h3>There are several schemes available to first-time buyers that can make homeownership more affordable, including:<ul><li>Shared Ownership – buy a share and pay rent on the rest </li><li>First Homes Scheme – discounted new-build homes for local buyers </li><li>Family Springboard or Joint Borrower, Sole Proprietor Mortgages – ideal if parents want to help without being on the title deeds </li></ul>Mortgage321 can assess which of these options best suit your circumstances and long-term plans.<h3>5. Get a Mortgage Agreement in Principle (AIP) </h3>An AIP shows estate agents and sellers that you’re a serious buyer and helps strengthen your negotiating position. We can arrange this quickly—often within 24 hours—giving you confidence when making an offer.<h3>6. Don’t Just Chase the Lowest Rate </h3>While a low interest rate is important, the right mortgage depends on more than just the percentage figure. Arrangement fees, early repayment charges, flexibility, and lender criteria can all make a huge difference over time.Mortgage321 compares deals from across the market—including specialist lenders not available directly to the public—to find the most suitable option for you.<figure id="figure-do0zw23448mhging8q"><img id="do0zw23448mhging8q" src="https://media.gettyimages.com/id/1353477484/photo/percentage-sign-moving-down.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=dDt-X2afr-Sl-OlGMymz2lN8BqGse2zHw8F4KyzH14k=" alt="Percentage Sign Moving Down" title="Percentage Sign Moving Down" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1353477484/photo/percentage-sign-moving-down.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=dDt-X2afr-Sl-OlGMymz2lN8BqGse2zHw8F4KyzH14k=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>7. Work With a Local Specialist </h3>As a Colchester-based broker with over 30 years’ experience, Mortgage321 understands the local property market inside out. Whether you’re buying your first apartment in the town centre or a family home in Stanway or Lexden, we’ll guide you every step of the way—from mortgage approval to handing over the keys.<h3>Your First Home Starts Here </h3>Buying your first property should be exciting—not stressful. At Mortgage321, we combine experience, local insight, and a genuine passion for helping first-time buyers achieve their homeownership goals.📞 Contact Mortgage321 today for clear, friendly advice tailored to you. Visit www.mortgage321.co.uk or call 01255 440142&nbsp;to start your journey with Colchester’s trusted mortgage experts.<figure id="figure-0qcfwnc0wmhgio2nd"><img id="0qcfwnc0wmhgio2nd" src="https://media.gettyimages.com/id/2217578500/photo/close-up-of-hands-managing-digital-house-checklist-via-mobile-device-futuristic-tech-scene.jpg?b=1&s=2048x2048&w=0&k=20&c=ndxu_Q6I-h6WXQ0oIzQtNGl7EuI68qF04qO3Qo5xNH8=" alt="Close-up of hands managing digital house checklist via mobile device, futuristic tech scene." title="Close-up of hands managing digital house checklist via mobile device, futuristic tech scene." class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Expert Tips for First-Time Buyers in Colchester

Top view of young woman accountant doing tax audit

For many self-employed individuals and limited company directors, the dream of homeownership can feel just out of reach — especially when you’ve only got one year’s trading history. Traditional lenders often prefer at least two or three years of accounts, but that doesn’t mean getting a mortgage is impossible.At Mortgage321, we specialise in helping clients with non-conforming circumstances — including those who’ve recently gone self-employed or incorporated their business. With over 30 years of experience, we know which lenders are open to flexible approaches and how to present your case in the best possible light.<h3>Why Lenders Prefer Two Years of Accounts </h3>From a lender’s perspective, two or more years of accounts demonstrate a pattern of income and stability. It helps them see that your business is sustainable and your income reliable. However, for many newly self-employed professionals or directors, that requirement doesn’t reflect reality. You may have:<ul><li>Transitioned from employed to self-employed in the same industry </li><li>Set up a limited company after years of contracting or sole trading </li><li>Experienced strong early profits but haven’t yet completed a second financial year </li></ul>Fortunately, the lending landscape has evolved — and that’s where we come in.<h3>Getting a Mortgage with Only One Year’s Accounts</h3>While high-street lenders may decline such cases, several specialist and intermediary-only lenders are willing to consider applicants with a single year’s accounts — provided the case is well-packaged and supported by clear documentation.Depending on your circumstances, lenders may assess:<ul><li>Latest year’s net profit or director’s salary plus dividends </li><li>Accountant-certified projections (for growing businesses) </li><li>SA302s and Tax Year Overviews from HMRC </li><li>Business bank statements to evidence turnover stability </li><li>Employment background (for example, if you’ve moved from PAYE to self-employment in the same trade) </li></ul>At Mortgage321, we know which lenders can accommodate these nuances — from self-employed sole traders through to directors of newly formed limited companies.<h3>How Mortgage321 Can Help </h3>We understand that every business — and every client — is different. That’s why we take the time to review your full financial picture, not just the numbers on paper.Our role includes: ✅ Identifying lenders that will accept one year’s trading figures ✅ Working with your accountant to ensure your documents are lender-ready ✅ Highlighting strengths such as consistent income, industry experience, or future contracts ✅ Presenting your case in a way that makes sense to underwriters ✅ Managing the full mortgage process from initial assessment to completionEven if your situation doesn’t fit a “standard” profile, our expertise in specialist mortgage lending means we can often secure solutions where others say no.<h3>Example Scenarios We Regularly Help With </h3><ul><li>A contractor who’s recently gone limited but has years of experience in the same role </li><li>A self-employed tradesperson with one strong year of accounts and a growing order book </li><li>A company director taking modest dividends but showing strong retained profits </li><li>A business owner returning to self-employment after a career break or partnership change </li></ul>Each of these situations can be navigated with the right advice and lender choice.<figure id="figure-d4b628b8jsmgw40gb8"><img id="d4b628b8jsmgw40gb8" src="https://media.gettyimages.com/id/2202982618/photo/male-call-center-agent-working-on-computer-in-busy-office.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Msqus6co-JVZcQB4hJo368GC9VQczL1VeWhhoPVjT6I=" alt="Male call center agent working on computer in busy office" title="Male call center agent working on computer in busy office" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2202982618/photo/male-call-center-agent-working-on-computer-in-busy-office.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=Msqus6co-JVZcQB4hJo368GC9VQczL1VeWhhoPVjT6I=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Final Thoughts </h3>Getting a mortgage with only one year’s accounts is entirely possible — it just requires the right approach and access to the right lenders.At Mortgage321, we specialise in helping self-employed clients, contractors, and company directors secure mortgages tailored to their unique circumstances. Whether you’re buying your first home, remortgaging, or investing through your company, we’ll guide you through every step with clarity and confidence.&nbsp; 📞 Talk to a professional today If you’ve only got one year’s accounts and want to explore your mortgage options, get in touch with Mortgage321. We’ll assess your eligibility, outline what’s achievable, and help you secure a solution that works for you and your business.👉 Call 0800 612 8292 or visit <a data-mce-href="http://www.mortgage321.co.uk" href="http://www.mortgage321.co.uk">www.mortgage321.co.uk</a> to arrange a consultation.<figure id="figure-kdti4sv7zmgw4171e"><img id="kdti4sv7zmgw4171e" src="https://media.gettyimages.com/id/2223392299/photo/caucasian-young-businesswoman-real-estate-agent-showing-the-keys-of-new-home-in-office-lobby.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=FKfjd48VxE0pJ7vD0vm2DTo0WL2OE4h0vZnGMOuUmHo=" alt="Caucasian young businesswoman real estate agent showing the keys of new home in office lobby" title="Caucasian young businesswoman real estate agent showing the keys of new home in office lobby" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: 50% 30%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="50%" data-positiony="30%" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2223392299/photo/caucasian-young-businesswoman-real-estate-agent-showing-the-keys-of-new-home-in-office-lobby.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=FKfjd48VxE0pJ7vD0vm2DTo0WL2OE4h0vZnGMOuUmHo=" data-mce-style="aspect-ratio: 16/9; object-position: 50% 30%;"></figure>

Getting a Mortgage with Only One Year’s Accounts: What You Need to Know

At Mortgage321, we pride ourselves on helping clients navigate challenging mortgage scenarios — the kind that don’t fit neatly into the boxes of traditional high-street lending.Recently, we assisted a couple who owned a mixed-use investment property comprising a ground-floor commercial unit and a self-contained flat above. Their situation illustrates just how complex semi-commercial borrowing can be — and how experience, persistence, and the right lender relationships can make all the difference.<h3>The Challenge </h3>The clients originally financed their property through a semi-commercial mortgage that was approaching the end of its term. Their goals were twofold:<ul><li>To repay the existing facility with their current lender, which had reverted to a high variable rate. </li><li>To raise additional funds to replenish savings used to refurbish the residential flat, which had recently been modernised to achieve market rent. </li></ul>However, the process wasn’t straightforward. The case presented several challenges:<ul><li>A vacant period while refurbishment works were carried out meant that rental income was temporarily reduced. </li><li>A mixed-use title (single freehold with both residential and commercial elements) limited the choice of lenders willing to consider the application. </li><li>The existing lender’s payment history appeared “irregular” on paper due to timing mismatches in rent receipts — although all payments had in fact been made within the month due. </li><li>A down valuation reduced the property’s assessed market value, impacting the available loan-to-value ratio. </li><li>Additional documentation and clarification were required around rental income declarations and taxation. </li></ul><h3>Our Approach </h3>At Mortgage321, we know that no two specialist cases are the same. Rather than relying solely on mainstream sourcing systems, we conducted manual research across our panel of specialist lenders — speaking directly with underwriters and business development managers to understand their appetite for semi-commercial lending.We identified Interbay Commercial as the most suitable lender based on their flexible underwriting, competitive 5-year fixed rate, and understanding of mixed-use property investment.We worked closely with both the lender and the client’s accountant to address each stage of the underwriter’s queries. This included:<ul><li>Providing a full explanation of the existing mortgage payment pattern. </li><li>Coordinating HMRC documentation to evidence rental income declarations. </li><li>Supplying property schedules, tenancy agreements, and confirmation of a new Energy Performance Certificate (EPC). </li><li>Supporting the client through the valuation process and liaising with the underwriter through several rounds of internal review. </li></ul><h3>The Outcome </h3>After detailed assessment, the application was approved and a formal mortgage offer was issued. The new facility provided:<ul><li>A competitive fixed rate for 5 years, protecting against further rate rises. </li><li>Capital raised to recover refurbishment costs. </li><li>A lending structure aligned with the client’s long-term investment goals. </li></ul>Despite a lengthy and detailed underwriting process, the clients were able to secure a facility that reflected the true value and potential of their property — and now benefit from stable payments, improved rental income, and a refreshed investment asset.<h3>Why It Matters </h3>This case is a great example of what Mortgage321 does best — guiding clients through complex lending situations with clarity, persistence, and experience.Semi-commercial mortgages often require more than just form-filling; they demand proactive communication, creative problem-solving, and an understanding of how different lenders interpret risk.If you’re a property investor or business owner facing a similar challenge — perhaps a commercial mortgage renewal, refinancing need, or capital-raising project — our team at Mortgage321 can help you find a tailored solution.&nbsp; Mortgage321 – Specialist Mortgage Advice for Complex Cases 📞 0800 612 8292 | ✉️ info@mortgage321.co.uk Helping you turn complex property finance into clear, achievable outcomes.<figure id="figure-2a83zqra3gmgghu68b" class=""><img id="2a83zqra3gmgghu68b" src="https://media.gettyimages.com/id/1205700235/photo/remortgage-handwritten-word-by-man.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=iRFD1aHGPoFq_CczsHWS7V6DSk7GMALffwaDXZ0yc08=" alt="Remortgage handwritten word by man." title="Remortgage handwritten word by man." class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1205700235/photo/remortgage-handwritten-word-by-man.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=iRFD1aHGPoFq_CczsHWS7V6DSk7GMALffwaDXZ0yc08=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>

How Mortgage321 Helped a Client Secure a Complex Semi-Commercial Remortgage

At Mortgage321, we’re often asked whether moving a property into a limited company can help reduce Stamp Duty Land Tax (SDLT) on future purchases. It’s a smart question, especially as more landlords and investors use limited company structures for tax efficiency and portfolio growth.But when it comes to your main residence, the rules can be surprising.<h3>The 3% Additional Stamp Duty Levy – A Quick Refresher </h3>In April 2016, the government introduced a 3% SDLT surcharge on most purchases of additional residential properties in England and Northern Ireland. This applies to second homes, buy-to-lets, and investment properties.The key exemption is when you sell your main home and replace it with another main home. In this case, you usually won’t pay the extra 3% (or you may reclaim it if you paid it at completion).<h3>What If You Sell Your Home to Your Limited Company? </h3>Some homeowners consider selling their current residence to their own limited company before purchasing a new home. At first glance, it seems logical:<ul><li>You’re selling your main residence. </li><li>You’re buying a new one to live in. </li><li>Surely this should count as a “replacement of main residence” and avoid the surcharge? </li></ul>Unfortunately, HMRC takes a different view.Because the sale is to a company you control, it’s treated as a “connected party transaction.” For SDLT purposes, this does not count as a true disposal of your main residence.👉 This means that when you buy your new home, HMRC will still view you as owning more than one property – and the 3% surcharge will still apply.<h3>Double SDLT to Consider </h3>There’s also another catch:<ul><li>Your company will have to pay SDLT (including the 3% surcharge) when it buys your old home. </li><li>You will then personally face SDLT (again with the 3% surcharge) when you purchase your new residence. </li></ul>That’s a double SDLT hit, which can make this route very costly.<h3>When Moving Property to a Company Makes Sense </h3>Transferring property to a limited company is often used for:<ul><li>Buy-to-let portfolios where rental income is being reinvested. </li><li>Tax planning, especially for higher-rate taxpayers. </li><li>Portfolio growth, where lenders may offer more flexible terms to companies. </li></ul>But as a tool for avoiding the 3% SDLT levy on your own home? Unfortunately, it doesn’t work.<h3>Smarter Alternatives </h3>If your goal is to move home without triggering the additional levy, the straightforward route is to sell your main residence on the open market and buy your next one personally.For landlords looking at restructuring, there may be other tax-efficient strategies – but these need careful planning around:<ul><li>Capital Gains Tax (CGT) </li><li>SDLT implications </li><li>Mortgage refinancing in the company name </li></ul>At Mortgage321, we regularly help clients weigh up these options and structure finance in a way that avoids costly mistakes.<h3>Final Word </h3>Selling your home to your limited company does not exempt you from the 3% SDLT surcharge on your next purchase. In fact, it could result in paying the surcharge twice.If you’re considering moving properties into a limited company or planning your next property purchase, it’s essential to get the right advice before you act.✅ Thinking about restructuring or buying your next property? At Mortgage321, we specialise in complex mortgage scenarios, including limited company lending, portfolio refinancing, and specialist buy-to-let strategies.📞 Call us today on 0800 612 8292 or email <a href="mailto:info@mortgage321.co.uk" data-mce-href="mailto:info@mortgage321.co.uk">info@mortgage321.co.uk</a> to arrange a no-obligation consultation. Let’s make sure your next move is structured in the most cost-effective way possible.💡 At Mortgage321, we specialise in complex property finance – from buy-to-let portfolios to limited company structures and beyond. Get in touch today to explore your options with confidence.<figure id="figure-nkxrmu59omg5ff4ac"><img id="nkxrmu59omg5ff4ac" src="https://media.gettyimages.com/id/2186746635/photo/a-vibrant-orange-paper-house-model-isolated-against-a-blue-background-with-ample-copy-space.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=5GyvEvFfb75W5ssa6YmlOZFXEXoTcyrbbR5LKiEzmq0=" alt="A vibrant orange paper house model isolated against a blue background with ample copy space" title="A vibrant orange paper house model isolated against a blue background with ample copy space" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg selected" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/2186746635/photo/a-vibrant-orange-paper-house-model-isolated-against-a-blue-background-with-ample-copy-space.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=5GyvEvFfb75W5ssa6YmlOZFXEXoTcyrbbR5LKiEzmq0=" data-mce-style="aspect-ratio: 16/9; object-position: center center;" data-mce-selected="1"></figure>Important Disclaimer The information provided in this article is for general guidance only and is based on our understanding of current Stamp Duty Land Tax (SDLT) rules at the time of writing. It is not intended to constitute tax advice.SDLT treatment—particularly where properties are sold to or held within limited companies, connected parties, or complex ownership structures—can depend heavily on individual circumstances and HMRC interpretation. Mortgage321 does not act as a tax adviser, and we cannot provide definitive advice on tax liabilities, exemptions, or refunds.Readers are strongly advised to seek independent advice from a qualified accountant, tax adviser, or directly from HMRC before proceeding with any transaction. Any decisions made based on the information in this article are done so at the reader’s own risk.Mortgage321 accepts no liability for any loss, cost, or tax charge arising from reliance on this content.

Selling Your Home to a Limited Company – Will You Still Pay the 3% Stamp Duty Surcharge?

Holding heavy sofa. Two moving service employees in a room

Moving home is an exciting step – but when you’re both selling your current property and purchasing a new one, the process can feel overwhelming. Timing, finance, and logistics all need to line up, and it’s easy to get stuck in the detail.At Mortgage321, we help clients every day who are navigating this exact journey. With the right plan, you can make the move smoothly and with confidence.<h3>Step 1: Understand Your Current Mortgage </h3>Before you put your home on the market, it’s important to check:<ul><li>Early Repayment Charges (ERCs): Will you face fees for paying off your mortgage early? </li><li>Porting Options: Can you transfer (“port”) your existing mortgage to your new property? </li><li>Remaining Balance &amp; Equity: How much equity will you release from your sale to use as your deposit?</li></ul>Mortgage321 will review your existing deal and explain the pros and cons of keeping it, porting it, or switching to a new mortgage.<h3>Step 2: Work Out Your Affordability </h3>Selling gives you access to equity – but affordability still plays a key role in your new mortgage. Lenders will look at your income, commitments, and credit profile. We’ll help you understand:<ul><li>How much you can realistically borrow </li><li>What your new monthly payments will look like </li><li>How stamp duty, legal costs, and moving expenses fit into your budget </li></ul>This way, you’ll know exactly where you stand before you commit to an offer on your next home.<h3>Step 3: Plan for Timing Gaps </h3>In an ideal world, your sale and purchase would complete on the same day. In reality, chains can break or timelines may not align.Mortgage321 can help you explore solutions such as:<ul><li>Bridging Finance: A short-term loan to cover the gap between sale and purchase. </li><li>Let-to-Buy: Letting out your current home and purchasing a new one if selling immediately isn’t right for you.</li></ul>With flexible finance options, you won’t feel pressured into rushed decisions.<h3>Step 4: Keep the Process Moving </h3>We coordinate closely with your solicitor, estate agent, and lender to keep everything on track. Our aim is to:<ul><li>Avoid unnecessary delays </li><li>Keep you updated at every stage </li><li>Provide options if circumstances change</li></ul><h3>Why Clients Trust Mortgage321</h3><ul><li>Independent, whole-of-market advice </li><li>Specialist knowledge of complex and non-standard cases </li><li>Over 30 years of mortgage expertise </li><li>Personal, one-to-one support from start to finish </li></ul>We don’t just arrange mortgages – we solve problems, anticipate challenges, and give you peace of mind throughout your move.<h3>Thinking of Selling and Buying? Let’s Talk. </h3>Whether you’re upsizing, downsizing, or simply relocating, Mortgage321 can help you structure your sale and purchase in the smartest way possible.📞 Call us on 0800 612 8292 ✉ Email&nbsp;info@mortgage321.co.uk 🌐 Visit <a href="http://www.mortgage321.co.uk">www.mortgage321.co.uk</a>&nbsp;Mortgage321 – your trusted partner for moving home with clarity and confidence.<figure id="figure-sfyo9mg6x4bmg57l377"><img id="sfyo9mg6x4bmg57l377" src="https://media.gettyimages.com/id/1834676974/photo/holding-heavy-sofa-two-moving-service-employees-in-a-room.jpg?b=1&s=2048x2048&w=0&k=20&c=uypxuLA8vbTlGYnp8JcPTMbYU0mq3hHX0BmE2XwAufc=" alt="Holding heavy sofa. Two moving service employees in a room" title="Holding heavy sofa. Two moving service employees in a room" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>

Selling and Buying at the Same Time: A Clear Guide for Home Movers

Mortgage321

Mortgage and Protection Broker based in Colchester

Mulish

Schibsted Grotesk

Merriweather

Hanken Grotesk

General Sans

We use cookies. By clicking “Accept,” you agree to our use of cookies as described in our <a href="https://mortgage321.co.uk/privacy-policy">Privacy Policy</a>.

Blog

Refused a Mortgage? How Mortgage321 Can Help You Get Back...

Expert Tips for First-Time Buyers in Colchester

Getting a Mortgage with Only One Year’s Accounts: What Yo...

How Mortgage321 Helped a Client Secure a Complex Semi-Com...

Selling Your Home to a Limited Company – Will You Still P...

Selling and Buying at the Same Time: A Clear Guide for Ho...