Self Employed Mortgage
Specific lenders are more in tune with assessing income from a business owner, utilising your share of the profits as personal income. It may also be essential to understand the workings of the business to present the most robust case to a lender. Our brokers take the time to understand your company and accounts to ensure we can obtain the best possible self employed mortgage terms.
Advias managed to source me a very competitive mortgage despite my income streams being very complex (business owner and foreign income). Extremely responsive and results driven. Knows the market inside and out. Thank you!
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Net profits to prove income for a self employed mortgage
Many lenders will only consider self-employed earnings from dividends and salary. This may not reflect your true income as you may have chosen to pay yourself what you need, rather than what the business could have paid you.
We work with lenders and underwriters that understand company accounts and can lend based on potential income.
Minority Shareholdings
If you hold less than 50% of a company, many lenders will disregard the company profits for your affordability. This reflects that you will not be in a position to declare company dividends.
We have lenders and underwriters who can view minority shareholdings and use the allocated company profits to boost your affordability.
Holding and group companies
Specific company structures can confuse a mortgage lender if there are layers of ownership or a group structure.
We are familiar with complex company structures, and we work with your accountants to present an accurate picture of profitability and affordability to a mortgage lender.
We have lenders and underwriters who can view minority shareholdings and use the allocated company profits to boost your affordability.
Directors loans
You may have invested significant sums in building your business to where it is today. This investment may have created a directors loan account where you may be able to repay yourself in a tax-efficient manner.
We work with lenders that understand director’s loan accounts and can base affordability using this income.
Pension contributions
One-off director’s pension contributions can create a profitability dip. This may deter lenders as they look at the year-on-year profits rather than understanding the underlying factors.
We work with your accountants to present the best possible picture of your company’s finances.
1 Year Accounts
With only one year’s worth of accounts, many lenders will not be in a position to grant a mortgage.
Some lenders can consider accounts from only one year; generally, the loan to value is low, and you should have a track record of earnings in the same field.
Perhaps the business recently converted from being a sole trader to a limited company.
Speak with an expert in self employed mortgages
Out brokers are experienced in assessing company accounts and working with lenders that specialise in assisting company owners to obtain mortgages on the best possible terms.
