Getting A Mortgage As Self Employed
When you are self-employed it isn’t impossible to get a mortgage, and it is very surprising the number of people we speak to that think about they are self-employed they don’t think you will be able to get one. The harsh truth is that lenders are very aware of the particular situation self-employed people are in, but this doesn’t mean that you can’t get one altogether. Lenders have a pretty straightforward process in place to work out how much they would be prepared to lend. Whether you are a sole trader, a partner or a company director, there is a process by which you can obtain a mortgage. In the case of sole traders and partners, the main criteria considered are the individual net profits while for company directors it’s their salary and paid dividends that are looked at. Some lenders are aware that many business owners will not draw all the money they are entitled to from the business and so will also accept the applicant’s share of net profits and salary.
Lenders will vary the amount of time it is expected for an applicant to provide evidence of income. Most will look at the income received over the last two or three tax years and either average it out or take the most recent year as a basis for calculation. However, if you have a good profile, some lenders will make it possible to get a loan with just one year’s set of accounts.
More About Getting A Mortgage As Self Employed
If you are freelance, you will often have income from various different sources. Freelance musicians, for instance, will be paid on a self-employed basis for much of their work but some of their teaching work will be on a PAYE basis with their income being taxed at source. The latter income will show differently on your SA302 form but with good justification and clear presentation, it will be treated no differently and should still contribute to your income for the year. We are a professional finance broker and we have our office in Poole, Dorset. We provide mortgages for everyone, so no matter what mortgage you want our team will be able to help you.
We were founded by Darren Barrett in 2009, this was during some of the hardest market conditions the industry has seen. The unparalleled, clear, trustworthy, honest and upfront service offered by Barrett Mortgages has meant our business has thrived during these times when clients have needed more individual and specialist help. All of our staff are fully qualified, experienced and chosen based on their keenness to provide the best possible experience for our customers. We promise no pushy hard sales tactics and have built a strong reputation which is important as we rely heavily on referrals from clients.
Get in contact with us if you are interested in the service we can provide you with and to find out more about how you can get a mortgage when self-employed.