Are you a self-employed individual facing the challenges of securing a self-employed mortgage in Stratford-upon-Avon, Coventry, Leamington Spa, Kenilworth, Warwick, or the rest of Warwickshire? We work with many self-employed clients who operate as a sole-traders, limited company owners or partnerships and are looking to arrange a mortgage or a remortgage either on their main residence or a buy to let property.
They often tell us they are frustrated as they have been declined by their own bank or existing lender simply due to being self-employed. They have been at risk of losing out on their dream property or just not being able to borrow as much as they require.
Here at The Mortgage Mum Warwickshire, we understand the unique struggles that come with working for yourself and proving to lenders that you are safe for them to lend large amounts of money to. We can help you to navigate the complexities, of lenders requirements, making your dream of owning a home, a reality.
The Self-Employed Struggle: We Get It
Despite more and more people becoming self-employed, it can still be a challenge to get a mortgage which can be incredibly frustrating.
4.24 million of us in the UK are self-employed…
So, you are not alone.
Historically it has been a struggle for self-employed people to get a mortgage, but lenders are adapting. Not all. But enough that there are now options for the vast majority of people.
Some lenders are offering creative solutions for people who are self-employed, and we are here to help people in Coventry, Kenilworth, Warwick, Leamington, Stratford-upon-Avon, and the rest of Warwickshire get a self-employed mortgage and fulfil their dream of owning a home. We will get to know you, fully assess your financial position, and recommend a lender specific to you, providing the personal service we are proud of and known for.
Limited company directors in Coventry, Leamington, Stratford-upon-Avon, Kenilworth, Warwick, and the rest of Warwickshire.
Often, as limited company directors, you will not draw all of the profits from the business. This can harm your mortgage viability with some lenders as they will only use the salary and dividends for affordability.
Not all though. Some lenders will work off your profits.
If you are new in business, it is likely that your profits are increasing year on year. Regardless to that, some lenders will still take the average earnings from the past 2 or 3 years.
Not all though. Some lenders can use your latest years figures for affordability.
This is where creative solutions are so very welcome.
At The Mortgage Mum Warwickshire, we will assess your company accounts and tax returns to place you with a lender whose criteria will maximise your affordability because we know and understand the nuances of the lenders criteria.
Sole traders or Partnerships in Coventry, Warwick, Kenilworth Leamington, Stratford-upon-Avon, and the rest of Warwickshire
If you are starting out as a new sole trader or partnership, you may be experiencing increasing profits each year.
We have access to lenders that will look at the last 2 years or even the latest years income to maximise your affordability.
If you have just started out as a sole trader or partnership, you will need at least 1 year of tax returns to apply for a residential mortgage. As soon as you have that year, contact us and we can discuss your best options.
It is possible to buy a buy to let without having completed a year of trading as a sole trader, there are lenders who will consider lending without a provable income.
The Mortgage Mum Warwickshire can help guide you through getting a mortgage if you want to buy an investment property in Coventry, Kenilworth, Warwick, Stratford-upon-Avon, Leamington and the rest of Warwickshire and get a mortgage as a self-employed person.
Contractors in Coventry, Warwick, Kenilworth, Leamington, Stratford-upon-Avon, and the rest of Warwickshire
Lenders will assess contractors differently again.
As a self-employed contractor, some lenders will want to see tax returns for the past 2 years but at The Mortgage Mum Warwickshire, we have access to bespoke lenders who will allow you to borrow based on the value of the contract alone.
Often this will allow you to borrow more than you could using the traditional accounts or tax returns.
What deposit will I need?
To get a self-employed mortgage in Coventry, Warwick, Leamington, Kenilworth, Stratford-upon-Avon, and the rest of Warwickshire, for most lenders you will need a deposit.
Some lenders will consider a deposit of 5% of the property value. Some will need 10%.
The more deposit you have, the cheaper the interest rate and typically the more some lenders will lend.
There are lenders who will lend with a 0% deposit – the figure for this is based on the rent you pay as well as a traditional mortgage affordability assessment.
What documents will you need?
The documents a self-employed applicant needs to provide for a mortgage, do not differ too far from the documents an employed applicant needs to provide.
Lenders will need:
Proof of Identification – passport / driving license
Proof of Address- driving license (if not used for identification), bank statements, gas/ water or electric bills/ credit card statements/ latest mortgage statement
Proof of income – 1/2/3 years accounts/ tax calculations and tax year overviews/ copy of current contract
3 months bank statements for personal accounts
3 months business bank statements (often required) sometimes 6 months are required