Popular Self Employed Scenarios
We have dealt with a number of self employed customers with a variety of different situations and have provided them with open and honest mortgage advice in Leeds.
Through our experience working with these types of customers, we have been faced with a range of different scenarios such as:
You are being paid a mixture of either salary, dividends or a directors’ loan as a self employed owner of a business.
You are in need of a mortgage advisor in Leeds to help you through the mortgage process in a time when your company is in a very busy period.
Instead of paying yourself a salary that is larger, you leave most of your net profit in your company.
Your business hasn’t been trading for one year plus.
You haven’t been able to match the banks’ strict lending criteria even though you have a good credit score.
You’re in need of self-employed mortgage advice in Leeds as a company owner, a director, a sole trader or business partner.
You need to borrow more than the amount you bank is offering.
You have an unsteady net profit.
Self Employed Customers & Bank Mortgage Advice
It’s common that every high street mortgage lender will use their in-house credit scoring system when deciding if customers are eligible to take out a mortgage with them. The credit scoring system is usually based on the mortgage lender’s history and experience as a mortgage lender within the industry.
Lenders will look at historical data of mortgage repayment statistics as well as any information on repossession and other common patterns so they can determine what would be high-risk when lending. By doing this, the lender can save time and money, however, can become a setback within a self employed applicants journey to their dream home.
Over time, it might have been common for lenders to find self employed applicants fall into arrears compared to anyone who is a regular employee. A factor to highlight is that employed applicants would usually not have a hard time obtaining a mortgage as self employed applicants would.
You may be aware that most high street lenders in the industry will have very strict lending criteria with a number of them wanting to see your profits increasing over a at least 3 years worth of accounts and some wanting a three year average.
It’s always best to be prepared with a good few of years of this evidence even if some lenders don’t require three years. Furthermore, this may increase your chances on getting a mortgage.
Self Employed Mortgage Advice in Sheffield
Like with a lot of mortgages and especially self-employed ones, the criteria can differ depending on the lender.
Our expert mortgage advisors in Leeds aim to match you with the most appropriate lender that works well with your personal circumstances. Our aim is to get this right the first time!
A benefit when you do go with Leedsmoneyman and have a mortgage advisor in Leeds work for you, we are not tied to any estate agents. Our service is tailored to the customer and we work for you with your best interests at heart.
We have a rich experience in dealing with a lot of limited company owners, sole trader, partners that have a salary, dividends or both. Our team try and help those who are really in need of support getting a mortgage through providing open and honest mortgage advice.
With the tailored made service, we will work hard in finding you the mortgage deal that suits your personal and financial situations.
Having Mortgage Problems?
Some of our customer get in touch with us after approaching their bank directly looking to obtain a mortgage but unfortunately have found it a challenging experience. This could be due to the following reasons:
- They have failed the bank criteria
- Net profit has fluctuated
- Personal circumstance
- You find the bank isn’t lending you enough
- Pay structure
- You credit score
Approaching different lenders is something we wouldn’t recommend, especially if you don’t have a lot of knowledge of their lending criteria. By doing this, you could have a detrimental on your credit which could become a risk in you not being able to obtain a mortgage at all.