Helping you overcome challenges you may face when obtaining a Self-employed mortgage.
Being self-employed as a Sole Trader, Partner or shareholding director of a Ltd Company can offer independence and flexibility, but when applying for a mortgage you can be presented with many challenges.
This is because most mainstream lenders use a one size fits all tick box approach to underwriting, which often discriminates against the self-employed resulting in lower loan amounts being offered or even a decline.
Instructing a highly competent mortgage advisor is the key requirement when applying for a mortgage when self-employed, as the knowledge of lender criteria together with the presentation of the application is of paramount importance.
Why choose Jordan Lynch
Established in 2006 as a specialist brokerage we have a proven track record in arranging mortgages for the self-employed and now have over 1000 self-employed clients.
Our expert team of advisers are highly knowledgeable of self-employed income structures whether it be derived from a Ltd Company, Partnership, LLP or as a sole trader.
We have direct access to the key decision makers at all the UK’s leading High St Banks, Building Societies and Specialist lenders and this level of access coupled with our knowledge of lender criteria enables us to arrange the most complex of mortgages and where necessary negotiate bespoke terms.
We’ve answered the questions you might have
What documentation is required when applying for a self-employed mortgage?
If you are a Sole Trader or Partner lenders will generally request copies of your last 2 years tax calculations and corresponding HMRC overviews.
If you are an Equity Partner in a Law or Accountancy firm, they will often accept an income reference from the managing partner or finance partner.
For Company Directors they will either request the last 2 years tax calculations & HMRC overviews and / or your last 2 years certified accounts for the business.
How will my income be assessed?
In all instances we will input your income into the lender’s affordability calculators and advise of the maximum loan available.
For Sole Traders and Partners, you can generally borrow up to 5 x the average of your last 2 years earnings as evidenced on the tax calculations or reference.
For Company Directors we will assess your tax calculations and certified accounts and then approach the most appropriate lender depending on the figures highlighted within the tax calculations and accounts as their can be wide differences in what lenders are prepared to lend to Company Directors as some will only base their decision on the salary and dividends drawn, whilst others will factor in any retained earnings.
What deposit will I need?
Some lenders will cap the LTV at 80% of the purchase price if you are self-employed, however, many lenders place no restrictions on the LTV whether you are employed or self-employed hence you can obtain mortgages up to 95% LTV.
Can I get a mortgage if I’ve only been self-employed for 1-year?
In most cases the answer is yes but it will be dependent on the industry you work in and what you did prior to becoming self-employed.
If it is the same industry a number of lenders will be comfortable lending to you, but even if it is a different industry, we have access to specialist lenders that frequently provide mortgages when there is only 1-years accounting information.