Mortgages for the Self-Employed
Who are we?
Usually, accountants often encourage putting their expenses through as high as possible, to keep profits at a minimum. This, unfortunately, leaves them with a problem when it comes to borrowing money. Sadly, you can’t have it both ways!
How much do I need to be earning?
Fortunately, some Mortgage Advisors will assess your income in a variety of ways. There are Mortgage Advisors like us, Mortgages Remortgages who will help you find a lender, who will lend more than others. It’s our job to find the one most suited to our client’s circumstances and maximise your borrowing to not only get you the best deal, but get you a home you want.
For example, a lot of Mortgage Advisors will only look at the last two years of your earnings, whereas we have access to some lenders who will only look at the latest year. This really benefits applicants whose earnings have recently risen as this will be taken into account when assessing you borrowing capacity.
For a Limited Company Director, the average of the last two years’ salaries plus dividends is generally what all Mortgage Advisors need. There are some instances however, where this varies. Some Mortgage Advisors only see you as employed if you own a certain percentage of the company. This counts even towards Directors, so they may consider going off your payslips from the last 3 months.
Some business owners run organisations that are highly profitable but don’t need the income so take a low dividend. This type of applicant can be at a disadvantage by the salary and the dividend method, but there are Mortgage Advisors out there who will consider using the net profit of the Limited Company as a solution to the problem.
You can Always Contact your Mortgage Broker in Doncaster
You can always contact your Mortgage Broker with the projected figures if your business is due to complete a set of accounts. Our Mortgage Advisors can calculate what your maximum borrowing would be based on a draft of the figures, although the accounts would need to be finalised prior to a formal mortgage application.
We have learnt that; it really is quite challenging calculating maximum borrowing capacity for a self-employed applicant – you could easily go to 10 different lenders and get 10 different answers! Using a friendly Mortgage Advisor like ourselves, Mortgages Remortgages – Mortgage Broker would probably be the best port of call If you need to maximise your borrowing capability.
Let us help you to get the maximum borrowing capacity you can as a self employed borrower, then you can make a decision of how much you would like to lend to get the home you want.