Call Us0208 421 7994

Mortgage Tips & Advice

Not all lenders treat self-employed workers equally. The tips and advice offered here will help mortgage advisors to see your true affordability.

Understanding Locum Doctor Income for Mortgage Purposes

Doctor and nurse discussing analysesIn theory, getting a mortgage as a locum doctor should be easy. NHS staff shortages. Income of £220/day. Hours available over and above the normal working week. NHS staff shortages (did I already mention that?). What’s not to like about locums as a mortgage applicant?

On the surface, everything looks rosy. But dig a little deeper and you’ll find locum doctor income – and the structure thereof – can be labyrinthine. Continue reading about  Understanding Locum Doctor Income for Mortgage Purposes

Determining relevant self-employed income and lending criteria

House Sprouting Roots and LeavesMortgage Strategy published a thought-provoking article last month. Its premise suggests that self-employed borrowers get a raw deal with mortgage lenders.

Harsh, you might say. But I agree with the content…to a point.

The majority of self-employed workers do still struggle to prove their mortgage affordability.

The problem is often that they try to get approved at their local or a High Street branch.

But a generic advisor doesn’t understand (or can’t use) income listed as a net profit.

If the system’s broke, get a broker to fix it

So, what’s the answer? Do you forfeit the ability to buy your own home if you work for yourself?

Continue reading about  Determining relevant self-employed income and lending criteria

Self-employed mortgage lenders

Self-employed mortgages have become harder to secure since the credit crunch. That’s no surprise; advisors see most non-PAYE applicants as higher risk.

That said, since easing out of lockdown, lenders have redefined what classifies as risk. Mortgage lending criteria is changing daily for everyone, not just the self-employed.

There are still some self employed friendly lenders: lenders sympathetic to independents. But how do you know who the best self-employed mortgage lenders are?

Continue reading about  Self-employed mortgage lenders

High St mortgages: a limited company contractor’s worst nightmare

In recent years, there’s been a revolution in the way we work in the UK. Individuals’ mindsets have changed; we’re challenging the age-old 9-5. Independent professionals are incorporating their own companies. They’re building a unique brand of expertise in their field.

Lady stressing over documentsMoreover, they’re in demand in many high tech industries. Their flexibility will aid recovery from the pandemic sweeping the globe. So why aren’t mortgage lenders keeping up with the new way we’re working in the UK?

The economic recovery needed—and still needs—these entrepreneurs. It was the rise in self-employment that supported all UK labour market figures after recession. Today, as we look beyond another crisis, that growth shows no sign of stopping.

Those independent professionals striking out on their own do so on a contract-to-contract basis. To streamline their businesses for flexibility, most use limited company payment structures. This involves more work than people realise, and not without cost.

So the question is, “Why go to all that trouble if you can’t get a mortgage afterwards?”

Continue reading about  High St mortgages: a limited company contractor’s worst nightmare

You can get a self-employed mortgage with just one year’s accounts

There are two ways you can apply for a mortgage when you have your first year of trading under your belt. A fast, savvy way or the slow and painful approach.

The fastest way for self-employed people is to speak to a specialist mortgage broker. Not just any broker, but one who knows what they’re doing. And that’s key, here.

Continue reading about  You can get a self-employed mortgage with just one year’s accounts

How to evidence self-employed income to get competitive mortgages

Securing mortgage finance on the High Street is far from straightforward for the self-employed. Few lenders assess self-employed income in the same way.

woman at desk with calculatorEach bank or building society has its own idea of risk. That risk invariably transfers to independent professionals when they set out to get a mortgage. Here, we look at some of the danger signs.

The one trait lenders share is adopting their own unique self-employed assessment criteria.

An oxymoron that thought process may be (as well as a real pain), but it’s nonetheless true.

One lender may insist on seeing three years’ accounts. Another may just ask for one year’s accounts. Yet another can ask to see your contract, bank statements and recent history.

Continue reading about  How to evidence self-employed income to get competitive mortgages

Two fatal mortgage judgement calls almost all contractors make

frustrated businessman dejected with laptopMany contractors still find it hard to secure mortgages from High Street lenders. There are two classic reasons, both of which could be resolved with better education:

  1. they approach familiar lenders, most of whom have no bespoke contractor mortgage policy;
  2. branch/call centre staff at these institutions don’t understand how contractors and freelancers work.

On one hand, contractors need to understand that their income is non-standard. In branch, you’ll rarely find anyone who understands limited company income.

In both cases, the contractor needs an interpreter. That’s where specialist brokers come in.
Continue reading about  Two fatal mortgage judgement calls almost all contractors make

Are mortgages for contractors easier than for self-employed?

businessman with lifebeltIt’s no secret. If you’re self-employed and don’t work PAYE, you struggle with High Street mortgage lenders. But some lenders have thrown freelancers and contractors a mortgage lifeline.

A growing number of lenders are looking beyond beyond typical IT-based check-boxes.

They’re now basing mortgage affordability instead on independent professionals’ annualised contract rate.

The downside is, this criteria bypasses less-educated branch and call centre staff. Advisors may even have told you, as a contractor, that you only qualify for a self-employed mortgage.

But mortgages for contractors don’t rely on payslips and accounts, as they’d have you believe. There is a better way!

Continue reading about  Are mortgages for contractors easier than for self-employed?

Halifax Turns Tide by Availing Contractors of ALL Mortgages

tide smashing over sea barrierANY professional contractor can now apply for mortgages using their contract rate* with Halifax. This is an unprecedented strategic move by the UK’s largest lender.

Before this update, Halifax only entertained contractors working in the IT sector. Now, the bank has smashed barriers to entry by offering mortgages to freelancers in any niche.

We cannot stress enough what a turn in the tide this change in policy represents. Not only for the lender, but also for self-employed people.

Many independent professionals have fought tooth and nail to get mortgages up until now. And at last, their work has its reward. Gone are the blinkered affordability calculations and the biased restrictions!

Continue reading about  Halifax Turns Tide by Availing Contractors of ALL Mortgages

Self employed mortgages are not beyond your reach

We’ve all been there. Our decision to go self-employed seems to be justified. Business is booming. With it, the freedom we sought is within our grasp. But there’s still one niggle: rent!

Private rent can be the most frustrating aspect of contracting. Knowing that we’ve earned it by our own means, us contractors develop an uncommon affinity with our cash.

Continue reading about  Self employed mortgages are not beyond your reach

Call 0208 421 7994 or Request a Call Back available 8:30am – 6:30pm