Mortgages For The Self Employed
It’s surprising how often we speak with self-employed people who think that owning a business or working for themselves means they are unable or unlikely to obtain a mortgage. The truth is that lenders are all too aware of the particular situation for self-employed people and have a pretty straightforward process in place to work out how much they would be prepared to lend. Being a sole trader, partner or company director will mean a specific process by which you can obtain a mortgage. In the case of sole traders and partners, the main criteria considered is the individual’s 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 be drawing all of the money they are entitled to from the business and so will also accept the applicants share of net profits and salary.
Lenders will vary the amount of time it is expected an applicant will have to provide evidence of income. most will probably 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. Many self-employed people who work on a freelance basis 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. This 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.
More About Mortgages For The Self Employed
With our help, you will be able to get a good mortgage even if you are self-employed. It shouldn’t be a bad thing to own your own business or to be your own boss and that is why we want to help you get onto the property ladder. Barrett Mortgages is a professional finance broker with an office in Poole, Dorset, providing mortgages for everyone including self-employed mortgages. We were set up by Darren Barrett in 2009, 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 ourselves a strong reputation which is important as we rely heavily on referrals from clients.