Self Employed Mortgage Advice in Leicester

Over our many years of mortgage industry work, we have worked with many self-employed customers who come from different backgrounds. Each one has gotten in touch with the hope of securing the perfect mortgage deal.

Utilising our expert knowledge of self-employed mortgage lending criteria, we’ve grown quite the reputation for being successful in this regard.

Our trusted team of mortgage advisors in Leicester are readily available to assist you in you securing a self employed mortgage product that best applies to what you are looking to achieve.

We are always on hand to offer full support and guidance across the duration of your mortgage process, providing you with expert mortgage advice and helping you to backup your mortgage application by referencing the income you earn and years of accounts’.

We frequently work alongside a lot of different self-employed mortgage customers, many of whom require taking out fast & friendly mortgage advice in Leicester.

Below is a section we have collated of different scenarios that we have found we have come across throughout our time as an experienced and knowledgeable mortgage broker in Leicester, when speaking to various self-employed mortgage applicants.

The mortgage lender will analyse various different factors when determining whether or not they will lend to you for. These include:

• As a self-employed business owner, you are getting paid some form of either a salary, dividends or a directors’ loan.
• Your company is currently in quite a busy time of the year and you require the help of a mortgage advisor in Leicester to guide you through your mortgage.
• You prefer to leave most of your net profit sitting in your company, rather than opting to pay yourself a larger salary.
• Your business has been trading for less than one year.
• Despite your credit score being great, for one reason or another you just don’t seem to match the banks’ very strict criteria for lending.
• You’re a company owner, a sole trader, a business partner or a company director, that is in need of expert self-employed mortgage advice in Leicester.
• You are limited by the bank as to how much you are able to borrow and you are in need of an amount that is greater than what they could offer.
• You have an unsteady net profit.

Generally speaking when it comes to the mortgage world, banks are not best suited for self-employed mortgage applicants when they are looking for mortgage advice. These banks have automated systems and though it is unfortunate, no matter how long you have been banking with them or the amount of money that goes into your account on a regular basis, if you get declined, that’s more or less the end of the line with that particular lender.

It’s in situations like these where a mortgage broker in Leicester can be a great choice to try and solve your mortgage woes. Our dedicated team are able to take the information they have gathered on your needs and current financial position, and match you up to a lenders mortgage criteria, hopefully allowing for you to continue on your mortgage journey.

More or less every high street mortgage lender that can be thought of will use their own in-house credit scoring policies when they are evaluating whether or not a customer can take out a mortgage with them. These credit scoring policies are often based on the mortgage lenders own history of working within the mortgage industry.

In doing this, they will take the time to review mortgage repayment statistics of the past, any information they have gathered on repossession and other common patterns in order to determine what sort of case, to them, would be perceived as a high-risk when lending. This saves both the lenders time and money and also yours, though it can unfortunately leave a lot of self-employed applicants back at square one during their mortgage process.

In the past, you could probably safely say that mortgage lenders have experienced many more self employed applicants fall into debt than others who are a regular employee. On the other hand, it is also quite fair to say that those employed applicants probably didn’t struggle nearly as much in obtaining a mortgage as a self-employed applicant would have.

If you’ve been doing any research on mortgage, then you will probably know that a lot of the main high street lenders out there have locked down, tight lending criteria, with many wanting to see your profits increasing over three years accounts (minimum), with a selection of them taking a three year average.

Whilst these rules don’t apply to every mortgage lender out there (with a portion only needing one years’), it’s always recommend that you make sure that you have a handful of years to hand, just in case you need them at all, as this will likely increase your success rate in your journey to obtain a mortgage with a lender.

We regularly converse with self-employed customers who for one reason or another have found approaching their bank directly for a mortgage to be rather difficult. Some of the reasons that we have heard for this include (but are not limited to);

• Credit score.
• Failed bank criteria.
• Personal situation.
• Bank won’t lend enough.
• Fluctuating net profit.
• Pay structure.

Definitely hold off from going to speak with lots of different lenders by yourself, especially if you are not well versed in understanding their lending criteria. Doing so can negatively affect your credit score and perhaps even prevent you from obtaining a mortgage full stop.