Are you self-employed/sole trader/ltd company director and need a mortgage?

Self-employed mortgages just got easier

There are numerous ways you can obtain a mortgage when self-employed and depending on your situation there will be different lenders who can be approached.

 

What income are you looking to use for your mortgage application is an important question- however, what income the lender chooses to use is even more important as it may be not the set of figures you were hoping they would look at. 

 

Let’s consider just some of the different scenarios where you will need one of our experienced mortgage brokers to assist you:

mortgage broker advice

Recently changed to Ltd company from Sole trader

If you’ve recently changed from Sole trader to a Ltd company director getting a mortgage can be difficult as some lenders can “reset” the typicaly 2-3 years histroy and/or evidenced required. 

 

However we have lenders who can ignore this recent change in some cases. 

Only 1-year accounts are available

If you’ve recently gone self employed you may find it tricky to get a mortgage as lenders typically look for 2-3 years history.  

 

However we have access to lenders who are happy with 1 years set of figures and/or happy to take a view on projector earnings provided by your accountant in some situations. 

Latest years earnings less than previous years

A recent change in earnings in the most recent year can be an issue as the lenders will want to understand the reason for the change and could decline for fear the business is not on a stable footing for the future. 

 

We have access though to lenders who can look past a recent decline in profits where there is an understanding of why this has happened. I.e Covid-19 etc

Latest set of accounts not ready yet

Most lenders like to see the latest full completed set of accounts to consider a self employed applicant. Often this can be no convientant as your accounts are completed later in the tax year. 

 

Thankfully though we have access to lenders who can consider your latest set of accounts typically up to 18 months old.  

What clients are saying about us

Excellent
Based on 47 reviews
Jessica
Jessica
2023-08-29
I would highly recommend Paul as a mortgage broker. As a first time lone buyer I began the process feeling very out of my depth, particularly in a market where mortgage rates are very high. But from the get go Paul provided reassurance and practical guidance and has been immensely helpful throughout the process. I've really appreciated his responsiveness, honesty and support.
Louise Griffiths
Louise Griffiths
2023-08-28
I reached out to Paul 2 years ago and giving this review now because I wanted to ensure that I could give a true review of what benefits I have experienced from using his service. I am thrilled with the financial expertise given to me by Paul. His skillful negotiation secured me an excellent mortgage rate within a short turn around time. This has not only set me on the path to paying off my principal balance but has also allowed me to simultaneously build a solid emergency fund. His initial guidance has been invaluable in shaping my financial future. I look forward to working with Paul again, once my 5 year plan is near its end. Highly recommended!
Calum Hebron
Calum Hebron
2023-08-05
Paul has been consistently excellent, ensuring we got the best possible mortgage deal at a time when rates weren't great. Paul worked with us to understand our financial complexities and went above and beyond to ensure they were understood by mortgage providers. We've been made to understand every stage of the process, and as first time buyers we were able to feel confident in the decisions we made. I would highly recommend working with Paul at Your Property Financial.
Czarina
Czarina
2023-08-04
My almost a year-long journey with Paul as my broker has been truly amazing, despite a few hiccups during the mortgage process. Working with him has been the best decision ever! As a first-time buyer, I lacked knowledge about purchasing a home, but Paul's guidance and expertise were outstanding. He explained things in a clear and concise way. What impressed me the most was Paul's responsiveness. He promptly addressed all my questions and concerns, never making me feel like a bother. Even when I faced challenges, Paul's determination and problem-solving skills were unwavering. I felt so supported throughout the entire process. Thanks to Paul's unwavering support, I managed to reach this point. I highly recommend him to anyone, especially fellow first-time buyers. Paul's knowledge, patience, and reliability are unmatched. He's not just a broker; he's an invaluable ally in this complex process. Thank you, Paul!
Alistair Prestidge
Alistair Prestidge
2023-07-11
Paul helped me to get my Mortgage approved in less then 48 hours! He has been great and I can’t recommend him highly enough. His communication is excellent, and he helped me understand each stage of the process easily. Thank you so much for helping me buy my very first home! I will most certainly be recommending Paul to friends & family!
James Colebrook
James Colebrook
2023-07-04
Having Paul assist with our property search an mortgage application has been brilliant. Paul has been very thoughtful and thorough when explaining the risks and benefits of products as well as patiently explaining processes. We'd happily recommend Paul to anyone else and would be more than happy to use his services again in the future.
Ev Galandova
Ev Galandova
2023-07-04
Very impressed by the service. We worked with Paul T and he was great. Definitely pleased to have gone through the process with this company. Recommending to anybody.
Peter Thomas
Peter Thomas
2023-07-02
Paul Tait has been extremely helpful with all aspects of my house purchase. He has explained many parts of the process that I did not understand, guided me through them and been readily available for calls at each stage.
Angela
Angela
2023-06-02
Paul has been extremely helpful and professional throughout the whole re-mortgage process. He is very solution orientated, responsive and supportive and I can't recommend him highly enough. Thank you very much Paul for your dedication and finally for making it happen!! Highly appreciated.
Michelle Boorman
Michelle Boorman
2023-05-31
Paul was an incredible broker to work with, would highly recommend! I went into the house buying process new and anxious, Paul was patient and walked me through the process each step of the way. Went above and beyond mortgage broking and felt like he was assisting throughout the buying process. Even when I went to put an offer in, the listing agent specifically said “you’ve got a really good mortgage broker, he is really on top of things”. He was prompt, helpful and matched me with a strong lender. 10/10.

Wish to use company profit vs own drawings

For all the right reasons you may pay yourself a small salary and take modest dividends to keep your tax bill in check. However when it comes to lending many lenders will only count the actualy income you’ve paid yourself. 

 

We have access though to lenders who can take a more broader view on this vs just looking at actually drawings. 

Using retained profits

Often you will retain profits within the business to draw another day in the future or wanting to keep them for when you can draw them at a lower tax bracket. 

 

We have access to lenders who can consider retained profits so you can keep the funds in the business but have them “counted” towards your mortgage income for your applications. 

Looking to use company profit before or after taxation 

Taxable drawings from your business are often drawn at level to avoid incurring further tax or ending up in a higher tax band, which can mean profit it’s ultimately ‘drawn” from the business. 

 

We work with many lenders who are happy to consider either net profit, gross profit or in some cases even profit before corporation tax. This can make a big difference in your earnings that are consider.  

Only salary is taken through the company

Sometime just a salary is drawn through the business with no further dividends taken. 

 

This can be due to the business size or the number of other directors/shareholders. 

 

This could be a situation where your “%” in the business is considered and therefore your access to that profit which could be used towards your income for your mortgage application. 

The benefits of being self-employed

Being self-employed carries with it many advantages like being able to pay yourself more tax efficiently potentially, choosing how much to pay yourself and also deciding to retain earnings to be paid in a completely different tax year.

 

However when it comes to the mortgage lenders very often “view” things differently from what you might think and often focus solely on your “taxable earnings” which for all the right reasons might be quite low. 

 

For the reason, it’s important and frankly beneficial to have a mortgage broker support you who has access to lenders who are more friendly to self-employed applicants and income. 

mortgage broker advice

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What you need to know about self-employed mortgages?

An overview of the self-employed mortgage application process:

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Confirmation of what financial years accounts or figures are available currently. 

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Considering the different incomes that could be considered such as your taxable earnings or company profit.

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Reviewing the different lenders to make sure you progress with the most suitable option that your broker advises. 

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If latest set of accounts can be brought foward to assist where needed then contacting your accountant to discuss options. 

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Your mortgage broker will then apply to the lender and work with them on the typically numerous questions they will have about your income and cirucmstance. 

Getting a mortgage when you’re self-employed is tough, but don’t worry we can help 😃

Our team of mortgage brokers are specialists in helping you navigate all of the different rates, fee’s and deals to make sure you end up with just the one mortgage that’s right for you. We also help manage the whole process for you so it’s nice and straightforward.

 

Often the lenders will make assumptions or even worse let the computer make the decision on whether to lend to you, this is where we step in to ensure you get the correct consideration for your application and we help present your application in the most suitable light; increasing your chances of acceptance on your first application.

Why choose us

We’re experts in the field

✅Our team of brokers are specialists with helping our self employed clients obtain the most suitable mortgage rate and terms whilst also navigating the different requirements and often compliance underwriting that lenders put on self employed applicants.  

We can find great deals at speed.

✅Access to over +90 lenders so you will get the most suitable rates and terms available with many of these lenders not available on the high street which are exclusive to brokers.

relationship

✅Real relationships with the lenders so we can get your application pre-approved if your situation isn’t straightforward. Plus your mortgage broker is there answer all the questions you may have.

Rapid solutions.

✅We’re quick, on our first call we will quickly establish your options and let you know the next steps so we can arrange everything promptly for you.

If you prefer to speak face to face we can also arrange a video call.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
 
Your Property Financial Ltd (FCA Number:942504) is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd (FCA Number: 187834) which is authorised and regulated by the Financial Conduct Authority.
 
We usually charge a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
 
The Financial Conduct Authority does not regulate some forms of buy-to-let, overseas and commercial mortgages.
 
Your Property Financial Ltd registered in England and Wales company number 12940973. Registered office address 5 Ducketts Wharf, South Street, Bishop’s Stortford, Herts, CM23 3AR.
 
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.