It is very 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. 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 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 applicant’s share of net profits and salary.
Lenders will also vary in 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 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.
If you are interested in our services please get in contact with us, we have a bunch of different services we can offer you and these include the first time buyers advise, buy to let mortgage advice and many more.