Self-employed applicants can sometimes get the short straw when it comes to obtaining a mortgage, with lenders requiring you to provide more information than employed applicants.
With this in mind, it is essential that you take heed of self-employed mortgage advice from an experienced and knowledgeable company such as ours.
By speaking to a reputable Mortgage Advisor in Newcastle like Newcastlemoneyman, we will provide you with invaluable advice, no matter what sort of business owner you are.
If you are looking to buy a new property or remortgage soon, we are here to assist. Because we have spent many years working with self-employed clients from a variety of backgrounds, all looking for us to secure the best deal for them, we have vast in-depth knowledge of Lenders self-employed criteria.
As a minimum, you will need one year’s on the accounts to get a mortgage. It tends to be self-employed specialist Lenders that will work off a single year; however, most High Street Lenders will want two years’ accounts.
Most Lenders take the average of your last two years’ worth of earnings. However, if your business is growing, some Lenders will work off the latest year and ignore what happened before.
Even though you are technically an employee of your business, Lenders do not assess you as such unless you own less than 25% of the shares. Most Lenders would add the dividend you have drawn to your annual salary to calculate your yearly earnings. The amount you can borrow will get based on a multiple of this figure.
There is the odd Lender who works from net profit rather than salary/dividend. In any case, this works well for Directors who keep their drawings low.
The deposit required for self-employed mortgage applicants is the same as employees. The minimum deposit you need to put down for a mortgage application is 5%. If you only have one year’s accounts, you might need to put down more though.
There are many mortgage options for contractors. More and more people work from short term contracts these days. If you can demonstrate a good track record, then the Lenders can consider taking your “daily rate” rather than your net profit. It’s perfect for contractors though as Lenders will consider treating you as self-employed instead if that works out better.
The Lender will also ask you how long is remaining on your current contract. They need to have the confidence that your income will be ongoing to ensure you can afford your mortgage. It could be possible to get a mortgage even if this is the first contract you have had depending on your specific circumstances.
We work with all types of self-employed clients, all needing assistance with mortgages. Here are just a few of the scenarios that our Mortgage Advisors in Newcastle are used to dealing with:
Traditionally, banks are not always very receptive when approached by their self-employed customers for mortgages. No matter how many years you have been banking with them or how much money you pay into your account on a regular basis, if their computerised lending criteria do not like your financial information, they will just say no.
We are used to dealing with complex mortgage situations. All you have to do is Get and Touch with us and our Mortgage Advisors in Newcastle we will do the rest.
Using a Mortgage Broker in Newcastle such as Newcastlemoneyman.com can save you a great deal of time, money and effort. From the first day that you make contact with us, we will work for you.
With in-depth knowledge of self-employed lending criteria, we will be sure to source you the best possible deal tailor-made to your circumstances.
We will be by your side from day one. You can rely on us from the first point of contact to the day when you collect the keys from the estate agent and walk through the front door of your new home.
As far as we are concerned, customer service is not something that is taken for granted. You will find our staff respectful, courteous, patient and attentive. If you don’t understand something or need to have something explained in more detail, just ask.
Check out our feedback at Reviews.co.uk and see why so many people choose us when looking for a self-employed mortgage.
As your Mortgage Advisor in Newcastle, we are here to help you. Get in touch with us today and make a date for your free mortgage consultation.
Your free mortgage consultation in Newcastle will last approximately about one hour. We will then recommend a mortgage for you, where you have no obligation for you to proceed and then it is your choice whether or not you wish to proceed with the mortgage.
As your Mortgage broker in Newcastle, we will carry out a Fact Find with you to establish your personal & financial needs before we recommend the most suitable mortgage for your circumstances. A credit check will then be required for you to obtain an Agreement in Principle. Once you have provided all the relevant documentation and a valuation of the property has been undertaken, you can then be issued a formal mortgage offer.
To avoid possible disappointment, we would highly suggest that you obtain an Agreement in Principle before you begin viewing a potential new home in Newcastle. At the very latest you should try to obtain one prior to making any offers to help with your bargaining position.
The standard for how long an Agreement in Principle will last is between 30 and 90 days, depending on the lender used. If your Agreement in Principle expires it can be easily refreshed with the help of your advisor.
You may have the option to get a second mortgage on your home in Newcastle for something like debt consolidation or home improvements. It may also be possible for you to take out a mortgage on a second property if you’re looking to potentially use it for yourself, a family member, a holiday home or a Buy-to-Let. If you require the help of a Specialist Mortgage Advisor in Newcastle, we are more than happy to have a chat about your options for a second mortgage.
The minimum deposit that will be required when purchasing a house in Newcastle with High Street Lenders is usually 5%. This, however, can be higher if you have had prior credit issues.
If you have had credit problems you may still have some options to get a mortgage but this require extra steps, such as being asked to put down a higher deposit than usual, potentially 15% of the property purchase price. If you are having difficulty in trying to obtain a mortgage because of past credit problems, please feel free to get in touch with your Mortgage Broker in Newcastle and we will see how we are able to help!
Once you have submitted at least one year’s accounts, you will be able to begin your mortgage process in Newcastle. Most lenders will use a sum of salary plus dividend to calculate the maximum mortgage, whereas others are known to use your net profit.
You’ll find that the lenders will usually want to see three payslips from an employee to prove their income and the latest 2 years’ accounts for Self-Employed applicants. You will also need to provide the lender with proof of ID, address and 3 months’ bank statements before they will accept you for a mortgage in Newcastle.
Our free consultation will usually last around an hour or so. Our advisors are able to turn round an agreement in principle within 24 hours of your appointment. A formal mortgage offer will on average take about three weeks. Before you know it you will have your mortgage secured in Newcastle.
A telephone call where we can take some initial details and find out about your plan of action to get to know your Self Employed situation a bit better.
You can take some time out to browse potential properties in Newcastle.
Make an offer on the property in Newcastle that you have your eye on – we’ll finalise your figures and help you get your best deal as a Self Employed applicant.
Our Mortgage Advice and recommendations. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
