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Self Employed
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| If you have previously relied upon self certification for your mortgage requirements due to the nature of your business, and have now been advised that they no longer exist we can still help.
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| Most Lenders usually require 3 years of Accounts (that's at least 4 years of trading).
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| We have lenders who will consider:.
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| 2 years accounts plus an accountants projection.
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| 2 years accounts only.
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| 1 years accounts plus an accountants projection.
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| 1 years accounts only.
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We can even raise funds using bank statements as proof of income, or raise funds
just using proof of trading, dependent on equity.
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| In some cases we can even raise funds where no income proof is required.
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enquiry form
Mortgages for self employed business owners and mortgages for self employed, freelancers are proving increasingly difficult to obtain in the current climate. Self employed mortgages require a huge degree of placement care, in order to maximise success. The restricted and limited mortgage lending in the UK has led Banks to prioritise those in employment above those seeking mortgages for the self employed and we can assist in redressing some of that balance.
All loan agreements and finance based on the self employed income of the Applicant has to be assessed carefully and in detail. We find those seeking mortgages for the self employed face increasing and additional problems in a mortgage market heavily reliant on demonstrating proof of income. We understand that Net income is not always a reflection of disposable income and that's where we help. We specialise and typically assist clients with self employed difficulties.
Mortgage lenders and Banks assess self employed finance applications on both affordability and suitability and whilst the company, partnership, or sole trader accounts are extremely important, they do not always tell the whole story. Tax accounts whilst helpful are a guide to affordability but we find that they are often assisted by a covering and supporting letter from the Accountant to the mortgage lender.
This allows us to explain the performance of the self employed business and provides a greater understanding to the mortgage underwriter, when the finance application is assessed.
Mortgage brokers dealing with mortgages for self employed clients, must fully understand the self employed business. This cannot just cover the basic and standard issues of profit or loss, but importantly the industry and specific business trends, trading history, the balance sheet, offsets for depreciation, and be able to assess claimable expenses, salaries' and dividends. They then need to apply this to the mortgage lender's criteria to ensure that the accounts will meet the mortgage and financial criteria. Not all lenders' offering mortgages for self employed individuals treat the accounts in the same way. Some may just look at net profit, but others can take a more holistic approach, looking at the fundamental strength of the business, its invoicing and expenses. Some will even accept projections on future turnover or profit and can take a view on the self employed mortgage application.
Saxon Mortgage Services is a bespoke mortgage broker specialising in mortgages for self employed. Typically, clients we assist realise that with the current credit crunch, there is a greater reluctance with many Banks, Building Societies and mortgage lenders wishing to agree and approve not only self employed mortgages but self employed credit facilities generally.
They understand the general financial market concerns and appreciate mortgage provider's legitimate need for reassurance over the stability, sustainability, and security of self employment businesses in the current climate. We assist self employed applicants in presenting these reassurances in order to ensure the success of the mortgage application. They appreciate there can be caution exercised by lenders when it comes to an assessment of their remuneration package, including gross and net profits which often do not demonstrate the true earnings potential of the business. However, with explanation, these concerns are easily rectified.
We regularly help clients in these situations and are specialists in this area. Our Advisers will take you through all the options available and can guide you through the process.
We can conduct the whole application via our virtual adviser system.
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