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Can I get a Self-Employed Mortgage?

joelherbert-wright

Self-employed mortgages are notoriously difficult to get from traditional banks. Over the years, they have been more open to the fact that clients working conditions and requirements have changed over time, as the Employers change working patterns and include zero hour contracts.


A Self-employed mortgage is a type of mortgage that is given to a client who works as a Contractor for another company, or as a Director for themselves. The difference between this and Employed, is that the Employee pays taxes at the end of the year, rather than PAYE (Pay as you earn), where your taxes are taken out each month. From a lending point of view, its harder for banks to understand what your business is paying you in "real time", so they assess your Tax Returns at the end of the year over 2-3 years, depending on the bank. This average is divided by the number of years.


What documents will I need?

SA302 - Tax Returns and Tax Calculation

Accounts of the company (Audited)

Company Bank Statements

Personal Bank Statements

Personal Guarantees (Not all Lenders)


What if I only have 1 years accounts?

If you have just started in business, traditional banks would not always lend. Most Lenders would let you borrow once you completed your second years of accounts, so they can see the trend of your business. so you would have to ask the Broker to contact a "specialist Lender", who might be able to help. Specialist Lenders are banks and lenders who let client's with "unusual circumstances" borrow on slightly higher rates, due to the "risk" associated with the customer. These circumstances are not always bad, but nist considered higher risk.

For example:

A client with more than 4 properties

A client who has a few missed payments on their mortgage

A client who needs to purchase a freehold block of flats

A client who wants to borrow more than 80% of the property value (PV).



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Always Wright Mortgages Limited is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/s/) under reference [Firm FCA Number] The FCA do not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies.

 

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The information contained within this website is subject on the UK regulatory regime and is therefore targeted at consumers based in the UK.

 

We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.

 

Your property may be repossessed if you do not keep up repayments on your mortgage.

 

There will be a fee for mortgage advice, the precise amount will depend upon your circumstances. Your Consultant will confirm the amount before you choose to proceed but we estimate it to be £500.

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​We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission model: percentage of the amount you borrow. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.

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