Getting professional advice is invaluable for the self-employed when applying for a mortgage. Tapping into a mortgage broker’s specialist knowledge will enable you to get much more information than internet research alone on the full range of lenders and mortgage products available to you.
Obtaining a mortgage when you are self-employed is all about planning and communication between you, your accountant and your mortgage broker.
It’s a common myth that the self-employed will be declined for a mortgage or would need to have been self-employed for 2 to 3 years. This isn’t necessarily true and, with support and guidance from Mortgage Solutions Belfast, you could get a mortgage that reflects your true earnings.
A number of banks are happy to offer a self-employed mortgage. However, before agreeing to lend you money, they need to be sure that you are in a position to make the repayments.
Gone are the days when lenders could offer clients a self-certification mortgage, where an applicant would just sign to confirm that they could afford the repayments. The emphasis now is very much on affordability – ensuring that a client can afford the repayments, both now and in the future. So, working closely with our Belfast mortgage advisors is even more important than before, because striking the right balance can make a very big difference.
Different banks have different lending criteria, so it’s definitely worth using a mortgage broker who will know in advance what is required – then you can ensure you are prepared.
To give you the best chance of success in the approval process, you need to ensure you have all the necessary paperwork in place before applying. It’s a good idea to speak to your accountant or think about hiring one if you don’t already have one.
With this in mind, you may be asked to provide 1-3 years of accounts, SA302 tax calculation forms, tax year overviews and 3 months of your business’ bank statements.
If you’ve only been trading a year, DON’T WORRY. There are mortgage lenders that will lend to you with 1 year in the right circumstances.
It’s important to remember that every lender is different. They all have a varied opinion on a massive range of criteria, which can make finding the right mortgage very complex.
This criteria changes all the time, as every lender alters their stance on what is and is not acceptable – for this reason, the best advice would be to chat to one of our advisors, who knows when and where the best deals are to be offered, and which lenders would consider an application before you even start.
At Mortgage Solutions Belfast we can get in touch with underwriters/business development managers (decision makers) who look at things on a case by case basis. Tell us about your situation and see how the advisors here can help.
Whatever steps you decide to take, it's important to remember that even if you aren’t approved for a mortgage by a high street lender, there are still lots of options open to you to get the finance you need, with lenders that will take a different view on your credit history, how long you have been self-employed or your level of income.
Come and see us for a FREE consultation and let us get you mortgage ready.
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