Popular Self Employed Scenarios our Mortgage Advisors have come across
Through our time as a Mortgage Broker in Newcastle, we have worked with a plethora of self employed applicants all looking fast & friendly Mortgage Advice in Newcastle.
Our Mortgage Advisors in Newcastle have encountered a variety of self employed applicants. Below is just a few that we regularly see:
-Your income is a combination of either salary, dividends or directors’ loan.
-You are experiencing a rough time with your business and need the help of a Mortgage Advisors in Newcastle.
-You have most of your net profit sitting in your company inctead of paying yourself a larger salary.
-Your business hasn’t been trading for over one year.
-Even though you have a good credit score, you don’t seem to match banks’ lending criteria for some reason.
-You are a company owner, a director, a sole trader, or a business partner who needs self employed Mortgage Advice in Newcastle.
-You are limited by the bank on the amount you can borrow, and you wanting to borrow more than that.
-Your net profit is not steady in position.
When applicants approach a bank for a mortgage, there can be times when they get declined. This can be because your situation doesn’t match with the automated systems that they have in place so even if you have been loyal to your bank, there is a chance they can decline you.
This is where a Mortgage Broker in Newcastle can help, our team strive in relieving the stress from the process. Here at Newcastlemoneyman, we have Mortgage Advisors in Newcastle who can search through 1000’s of deals to find you the perfect deal for your situation.
Self Employed Customers & Bank Mortgage Advice in Newcastle
It’s common to find that a lot of high street lenders use their own in-house credit scoring policies when it comes to customers looking to take out a mortgage. Furthermore, many high street lenders have rigorous lending criteria, with a lot of them requesting a minimum of three years of accounts with some accepting a three-year average.
A lender will assess previous mortgage repayment, repossession information as well as other common patterns to see which applicant would be a risk to lend to. By doing this, a lender will save time and money, however, it can leave self employed applicants stumped on the mortgage journey.
Over the years, there has been an increase in self employed applicants falling into arrears compared to employed applicants. Keep in mind that employed applicants are more likely to have had fewer obstacles to overcome to meet the lender’s strict criteria.
Many high street lenders out there have strict criteria, also they are expecting your profits to see an increase over a minimum of three years accounts, with a number of them taking over three years.
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.
Why you should choose Newcastlemoneyman as your Mortgage Broker in Newcastle?
The lending criteria vary between each lender. An expert Mortgage Broker in Newcastle can provide a helping hand through the process as well as find you the best mortgage product for your situation.
We have helped many customers all with varying mortgage goals, especially self employed. Our Mortgage Advisors in Newcastle have helped a range of self employed applicant like limited company owners, sole traders, partners that receive salary, dividends or a combination of the two.
Our team use both their rich knowledge and extensive experience to find solutions that will help self employed applicants along their mortgage journey. We are here to find you the most suitable mortgage product for your situation.
Having Mortgage Problems?
Through our experience in the mortgage industry, we have dealt with many self employed applicant who have approached us after being decline by their bank for a mortgage. Below are some of the reasons we have encountered the most.
– Applicant has not met the bank criteria
-Net profit is inconsistent
– Applicant’s personal situation
We do recommend that you resist the urge to approach multiple lenders by yourself in particular if you have little knowledge of their lending criteria. This could result in your credit score being harmed which can make it difficult when getting a mortgage in the future.