Popular Self Employed Scenarios
We work with a wide variety of different self-employed mortgage clients, all in need of some expert, fast & friendly mortgage advice in Sunderland. Here are just a selection of the different scenarios we have faced over our time as a mortgage broker in Sunderland, when speaking to self employed mortgage applicants.
- You’re an owner of a company, a director, a sole trader or you are a business partner, requiring expert self-employed mortgage advice in Sunderland.
- The bank will only allow you to borrow so much and are needing to borrow more than that amount.
- As a self-employed business owner, you are being paid a combination of salary, dividends or a directors’ loan.
- You leave the majority of your net profit sitting in your company, as opposed to paying yourself a larger salary.
- Despite having a really great credit score, for one reason or another, you just don’t match the banks’ strict lending criteria.
- You have an unsteady net profit.
- Your business has only been trading for a year.
- Your company is going through quite a busy period of time and you require the assistance of a trusted mortgage advisor in Sunderland throughout the mortgage process.
Generally speaking, banks are not always the best options for self-employed mortgage applicants to speak to directly. These banks have automated systems and unfortunately, no matter how many years you have been banking with them or how much money you pay into your account on a regular basis, if the computer says no, you’re out of luck.
This is where a mortgage broker in Sunderland like Sunderlandmoneyman may be able to help. We can match up your needs and current financial position to different lenders criteria, giving you a better chance of success on your mortgage journey.
Self Employed Customers & Bank Mortgage Advice
Almost every high street mortgage lender you can think to speak to will use their in-house credit scoring policies when granting their customers a mortgage. These credit scoring policies are based on the mortgage lenders own experience and history throughout their years in the industry.
They’ll analyse previous mortgage repayment statistics, repossession information and other common patterns in order to determine who they believe would be risky to lend to. This will save the lender both their time and their money, but can leave a lot of self-employed applicants without a way to own their dream home.
In previous years, it is entirely possible that mortgage lenders have had far more self employed applicants fall into arrears than who are employed, though it’s also fair to point out that those employed applicants likely had a lot less hurdles to jump through, just to meet the lenders strict criteria.
You’ll find that the vast majority of high street lenders out there have very strict criteria and many want to see your profits increasing over a minimum of three years accounts, with some taking an average over three years.
Whilst this doesn’t apply to every lender (with some only requiring one years’), it’s always better to make sure you have a good few years anyway, to increase your chance of finding a mortgage.
Self Employed Mortgage Advice in Sunderland
The variances in lending criteria can completely depend on the lender when it comes to self employed mortgages and it is the job of our dedicated mortgage advisors in Sunderland to match you up with the most suitable lender to go with. This is something we aim to get right first time!
The work we do and the service we provide is purely for you, our customer. We will only ever have your absolute best interests at heart.
We have a lot of experience in aiding and guiding a great deal of limited company owners, sole traders, partners that receive a salary, dividends or a mixture of the two. Utilising the knowledge we have acquired over our over two decades of mortgage industry experience, we’re often able to find solutions for those who need our help.
We are able to use the wealth in-depth experience and knowledge we have at our disposal to find you the most suitable mortgage for your personal and financial situation.
Having Mortgage Problems?
On a regular basis we make contact with customers who for one reason or another have faced a measure of difficulty when going direct to their high street mortgage lender. Some of these reasons have been known to include;
- Failed banks criteria
- Fluctuating net profit
- Pay structure
- Credit score
- Personal situation
- Bank won’t lend enough
You should definitely make sure that you don’t keep trying lots of other lenders without being completely clued in to their strict lending criteria, as this can have an adverse impact on your credit score. Furthermore, this could actually harm your chances of getting a mortgage full stop.