Mortgages
Self Employed Mortgages
Mortgages made simple for the
self-employed
People become self-employed for various reasons. It could be to grow a thriving local business or a lifestyle company to allow you more time with the family. Whatever the reason or however you have decided to set your company up it could ultimately lead to lenders asking a vast array of underwriting questions which in turn makes the self-employed feel as if obtaining mortgage finance is difficult.
Lenders like lending to people they consider to be at a low risk of defaulting on their monthly payments. If you’re self-employed, lenders will want to see proof of a steady income over time.
What is a self-employed mortgage?
There’s no such thing as a ‘self-employed mortgage’. You are going to get a normal mortgage, you just have to jump through more hoops to prove your income than someone who is on a company payroll.
Given the level of complexity, the variety of lenders and their criteria that are currently on the market for self employed mortgage borrowers, an experienced and knowledgeable adviser is invaluable and a great place to start when looking for your mortgage. As a whole of market adviser, we are able to search a huge number of mortgage rates and lenders to find you the very best deal.
Our approach
Personalised assessments and access to the right lenders
We will assess your situation in great detail to determine how to execute your transaction in the most efficient and timely manner possible.
Our recommendation, which has been derived from a full assessment of your business accounts, along with a precise understanding of you and how your business operates.
We have access to specialist lenders who provide mortgages to those borrowers who fall outside of mainstream lending criteria. They operate in niche markets, have underwriters assessing cases individually and understand that a one-size-fits-all lending policy doesn't suit many borrowers. However mainstream mortgage lenders routinely lend to the self-employed too and you may not need to use a specialist.
With both specialist and mainstream lenders, you should have full access to the choice between fixed and variable rate mortgages including tracker mortgages. If you are looking to re-mortgage there would potentially be access to the lender paid legal costs and a survey being paid for too.
Mortgages for sole trader & partnerships
Owners of sole trader or partnership businesses will generally be assessed by way of their HMRC tax calculations. These will confirm income from the business and any other revenue such as rental property income.
Our brokers have the experience to understand that lenders can adopt varying approaches when assessing borrowing capacity with the majority looking to average income over the last 2 or 3 years, but we also have lenders who will consider purely the latest years figure and even a projection.
Mortgages for limited company directors
Directors of limited companies will typically draw a small salary from the company and take the remainder of their income through dividends. These are both accepted forms of income for lenders, but what if you leave retained profits in the business or make large pension contributions?
Our brokers are highly experienced of dealing with ltd company owners and know which lenders will consider looking at the profits of the business instead of the actual drawings. Pension deductions can greatly reduce a company’s profits but we have the knowledge and experience to know which lenders to approach who will consider taking this into account when assessing borrowing capacity.
Business performance can vary and we can talk directly to underwriters to ensure they understand fluctuations in profits. Lenders will typically average self employed income over the last 2 or 3 years but we also have a few lenders who will consider using just the latest years figures.
Mortgages for CIS workers
Self-employed through the Construction Industry Scheme (CIS vouchers)? You need to be calling us today to arrange your mortgage.
Certain lenders have more appetite to lend and underwrite your mortgage capacity using your voucher income before tax instead of your net profit. Likewise, different lenders will average your income over 3, 6 or 12 months and we will use our knowledge to place you with he most favourable lender.
