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:

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

Pat Traynor
Pat Traynor
2022-10-15
Paul was very helpful in sourcing the best equity release deal at a time of sudden increases in interest rates. He kept me Informed during the process and was always available to answer questions. I raised the money to help my daughter buy a bigger flat.
Tim Whitcher
Tim Whitcher
2022-10-09
Very professional and personable, Paul always had the time to ensure that we understood everything and that we got the best deal possible that was right for us.
Cally Bravington-Smith
Cally Bravington-Smith
2022-09-21
Paul has been exceptional during the course of this year helping us buy our next property, his support and guidance through a lengthy and tricky transaction was second to none. Paul is very personable, and unlike many other brokers would work outside the normal 9-5. Always had our best interests in the forefront. Highly recommend :-)
Charlotte Faucher
Charlotte Faucher
2022-09-19
Benefiting from Paul's expertise to help us secure our first mortgage was very precious. Paul was always available to answer any query we had, and he submitted our application very quickly once we had gathered our documentation. I've already recommended the company's services to friends!
Louisa Smurthwaite
Louisa Smurthwaite
2022-08-03
Paul helped me find a new mortgage. His knowledge was invaluable. Adding to this, he was extremely patient with me while we navigated some complex decisions. Thanks Paul, amazing service!
Sinead Ennis
Sinead Ennis
2022-07-18
The whole process of getting the right mortgage was made easy, with continued support all the way through. Highly recommended.
Daniel Lee
Daniel Lee
2022-06-17
My girlfriend and I are buying our first home and Paul has been absolutely fantastic every step of the way. He’s knowledgable, friendly and very approachable, regardless of the time of day, even replying to emails at gone 9 o’clock at night! Would definately recommend and will definately be using in the future!
Chris Healy
Chris Healy
2022-06-13
Paul has been incredibly helpful and informative every step of the process of me owning a property, as a first time buyer there was I lot I didn't know and he's really gone the extra mile for me.
Paul Ho
Paul Ho
2022-04-15
Paul's dedication, expertise and attention to detail was instrumental in securing the deal for my house purchase. In my opinion his fees was money very well spent, and would recommend him without hesitation.
Panos Savvas
Panos Savvas
2022-04-01
Paul worked with me and my wife to find the right mortgage and insurances needed for our new home. He's is very knowledgeable and professional. I never felt rushed or uniformed. He really went out of his way to ensure we had all the information we needed and guided us through the process. Beyond that Paul went above and beyond in working with our conveyancer and the estate agent to assist in our exchange and completion. I would not hesitate to recommend him or use him again in the future.

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. 

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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.