The self-employed mortgage market is potentially the most complex of all areas we deal with when arranging mortgage finance.
The requirements from lenders differ wildly with several variances outlined below;
Number of years trading – some lenders will consider an application with just a single year of accounts.
Income used for Limited Company Shareholders – whilst most lenders allow salary plus dividends, a few consider salary plus share of net profit. This can make a huge difference to the borrowing level available in some cases.
Most recent years accounts – for a growing business a lender which bases its mortgage decision on the most recent years income rather than an average of the past two or three years will be an advantage.
Contractors – a growing number of people now work on a contracted basis rather than being a permanent employee. Specialist lenders, often not available on the High Street, have huge experience in this sector.
As can be demonstrated this is an area where business owners should not despair if their natural first port of call (their bank), is either unable to provide a mortgage or falls short of the amount needed as expert mortgage advice can smooth the path to that ideal home.
