Mortgages for the self-employed
Your home may be repossessed if you do not keep up repayments on your mortgage.
The value of pension and investments can fall as well as rise. You may get back less than you invested.
Whether you are a first-time buyer or subsequent home mover or just want a remortgage, if a lender considers you to be self employed the process can become more complicated. However at Mortgage Hunters we have considerable expertise in successfully arranging mortgages for the self-employed.
Who is classed as self-employed?
- A sole trader
- People a business partnership or LLP
- A shareholder in a limited company where you own more than 15% of the share capital (different lenders have different shareholding criteria)
You will be classed as self employed by most if not all lenders.
Numerous self employed clients have come to us, concerned at already having been declined or turned away by their existing lender or bank.
What issues can arise?
The issues than can arise for the self-employed when dealing with lenders are:
- averaging your last 2 or 3 years income or net profit
- having a lower shareholding percentage criteria
- only accepting salary and dividend income forcing you into drawing a higher income to qualify for the mortgage and thereby increasing income tax needlessly
- declining anyone who does not have two years trading history
- declining you when the mortgage is for capital raising, or business investment.
Having successfully placed self-employed mortgages since we started, we have developed the expertise to know which lenders will:
- Just use your last years’ income if higher
- Use retained profit and salary, avoiding the need to draw large dividends
- Use a higher shareholding percentage before classing limited company directors as self employed
- Have more relaxed criteria and allow capital raising for most legal purposes
By using Mortgage Hunters Financial Services you could save yourself time, frustration and disappointment. We can quickly evaluate your circumstances , identify the appropriate lender and establish whether you can obtain the mortgage you want.
Even if you do not have immediate needs we are happy to speak with you and establish the best way to arrange your finances for future plans.
Looking for a mortgage? Call 01438 359300 for a FREE, no-obligation initial consultation today!
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Talk to one of our mortgage advisers today with no obligation. We can help you to find you the most appropriate mortgage rate available – our mortgage advisers can find a mortgage rate that suits you from the whole of the market.
We will find the most suitable mortgage and insurances tailor made just for you.