Mortgages For Self Employed
Whether you are a contractor, builder, plumber, web designer we are here to help. Sole trader or limited company we understand your situation. Whatever your situation we’re here to work for you.
- Professional self-employed mortgage advice
- Your own personal mortgage advisor
- Over 20,000 mortgages assessed
- Over 109 lenders cross checked
- Retained profits can be taken into account when assessing your income
Being self-employed or a company director has both benefits and drawbacks. Unfortunately one of the drawbacks is getting a mortgage. Most lenders have different criteria for their loans for those who are self-employed or company directors . Fortunately, we are experts in getting people who are self-employed a mortgage that fits. Call us now on 0800 368-8879
Use our self employed mortgage calculator to find out how much you might be able to borrow
Which Lenders Accept Self Employed?
Unfortunately there is no definitive list of lenders specifically for the self employed. There are however specialist self employed mortgage brokers that we work with that have years of experience finding the best deals and dealing with an array of different circumstances from self employed clients.
Criteria differs from lender to lender with some requiring a full 3 years of accounts showing profit while others are more willing to lend to self employed people with 1 year of accounts. With constantly changing criteria it wouldn’t be suitable to list lenders as we would not want any of our users to apply think they will be accepted then be declined leaving a mark on their credit score. This is why we advise you to speak to a specialist broker that has the up to date knowledge within this market. Your specialist broker will be able to check your eligibility and find lenders suitable for your circumstances.
Help To Buy For Self Employed
The help to buy scheme is designed to help people get on the property ladder. The government will lend 20% of a house value up to £600,000 interest free for a 5 year period. So far the help to buy scheme has helped over 100,000 households get on to the property ladder. If you are self employed with 3 years worth of accounts there are many deals available to you with the help to buy. If you have 1 or 2 years worth of accounts then it may be harder for you to get accepted by a lender. There are lenders out there that will still lend to customers with fewer than 3 years worth of accounts. If you are still in your first year of trading it is unlikely that you will be able to secure a mortgage with the help to buy scheme. If you are nearing the end of your first financial year there are certain circumstances where lenders will take into account estimated income from a certified accountant.
Declined By My Bank, Can I Still Get A Mortgage?
If you have been turned down by a lender don’t lose hope. Lenders all have different criteria that can change quickly. If you have applied through a lender that you have been banking with for years it doesn’t mean you cant get approved by a different lender. You may fall out of the lending criteria for your bank even if you have been banking with them for 20+ years. Some banks don’t have manual underwriters which means lending decisions are computerised, this can mean that even if you fall slightly outside of the criteria you will be disapproved.
Since the change in regulations from the FCA it has become harder across the board to secure a mortgage so you are not alone. With the credit crunch lenders had less money to lend and stricter criteria for lending which means they pick and choose who they lend to. Each lenders criteria is different which is why more and more people are turning to mortgage brokers to secure their mortgage, this is due to the experience and knowledge of lenders criteria.
If you have applied personally to a lender and been declined it may be best to speak with a broker before applying for further mortgages, each time your are declined it will go on your credit report and this can negatively impact future applications. Get in touch with us today using one of our contact forms or call us on 0800 368 8879 for free advice.
Self Employed Mortgages No Proof Of Income
Since the change in regulation self certification mortgages no longer exist. In the past this was usually the kind of mortgage that self employed people got. This means that to get a mortgage or FCA regulated product you need to be able to proof your income. The FCA brought in regulation to put the responsibility on the organisation instead of the individual to ensure they could afford any financial lending. This made lenders tighten up their criteria and eliminated self cert mortgages.
If you are looking to borrow on your home or release equity there are means to do this through a second charge or secured loan, these loans are not regulated by the FCA so they are possible to get with no proof of income.
Lenders are now required to ‘lend responsibly’ this means that they need to see proof customers can afford their products and are in a stable position now and in the future to meet the repayments and all other commitments the customer may have.
How To Prove Income?
Most lenders require 3 years of accounts or trading history. The normal evidence that lenders are, the SA302 self assessment tax return form, Finalised accounts and projected accounts. Some lenders are more flexible and can use qualified accountants references to show pay slips.
The below is a list of self employed income lenders accept:
Sole Trader – Net profit and total income received (SA302)
Partnership – Your share of net profits received or total income received (SA302)
Limited Company – Salary, Dividends and some lenders can consider net profit if you have left profit in to invest in the business
If your circumstances are complex for example if you need a contractor mortgage then it is advisable to speak with a specialist broker who will have the knowledge and experience you need to secure a mortgage with the right lender.