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Wednesday 19 January 2022
Wednesday 19 January 2022
Wednesday 19 January 2022
Wednesday 19 January 2022
At Barrett Mortgages, we understand the unique challenges faced by self-employed individuals when it comes to securing a mortgage. Contrary to popular belief, being self-employed doesn’t mean you can’t obtain a mortgage—it just requires the right approach and guidance. Lenders are well aware of the circumstances for self-employed people and have specific processes to assess your income and lending eligibility.
How Lenders Assess Self-Employed Applicants
Sole Traders and Partners
For sole traders and business partners, lenders focus primarily on:
Net Profits: This figure is used to determine how much you can borrow.
Company Directors
For company directors, lenders typically consider:
Salary and Dividends: These figures are used to calculate income.
Share of Net Profits: Some lenders may include your share of net profits if you don’t draw all the money you’re entitled to from the business.
Income Evidence Requirements
Lenders usually require evidence of income for the past two to three tax years. Depending on your financial profile:
Average or Latest Year: Lenders might average your income over the years or use the most recent year as a basis for calculation.
Single Year of Accounts: Some lenders may approve a mortgage with just one year’s accounts for strong applicants.
Freelancers
Freelancers often have income from multiple sources. For instance:
Self-Employed Income: This is typically reported through an SA302 form.
PAYE Income: Income taxed at source (e.g., teaching work) can also be included if presented clearly.
Why Choose Barrett Mortgages?
At Barrett Mortgages, we believe that owning your own business should not be a barrier to owning a home. We offer:
Specialist Expertise: Our team has extensive experience helping self-employed clients secure mortgages.
Clear and Honest Advice: We provide straightforward, transparent guidance to help you navigate the process.
Strong Reputation: Founded in 2009 by Darren Barrett, we’ve built our business on referrals and trust.
Contact Us Today
If you’re self-employed and looking to get on the property ladder, Barrett Mortgages can help. We specialise in securing mortgages tailored to your needs, so you can focus on growing your business while we handle the complexities.
Get in touch with us today to learn more about how we can help you secure the perfect mortgage.
At Barrett Mortgages, we understand the unique challenges faced by self-employed individuals when it comes to securing a mortgage. Contrary to popular belief, being self-employed doesn’t mean you can’t obtain a mortgage—it just requires the right approach and guidance. Lenders are well aware of the circumstances for self-employed people and have specific processes to assess your income and lending eligibility.
How Lenders Assess Self-Employed Applicants
Sole Traders and Partners
For sole traders and business partners, lenders focus primarily on:
Net Profits: This figure is used to determine how much you can borrow.
Company Directors
For company directors, lenders typically consider:
Salary and Dividends: These figures are used to calculate income.
Share of Net Profits: Some lenders may include your share of net profits if you don’t draw all the money you’re entitled to from the business.
Income Evidence Requirements
Lenders usually require evidence of income for the past two to three tax years. Depending on your financial profile:
Average or Latest Year: Lenders might average your income over the years or use the most recent year as a basis for calculation.
Single Year of Accounts: Some lenders may approve a mortgage with just one year’s accounts for strong applicants.
Freelancers
Freelancers often have income from multiple sources. For instance:
Self-Employed Income: This is typically reported through an SA302 form.
PAYE Income: Income taxed at source (e.g., teaching work) can also be included if presented clearly.
Why Choose Barrett Mortgages?
At Barrett Mortgages, we believe that owning your own business should not be a barrier to owning a home. We offer:
Specialist Expertise: Our team has extensive experience helping self-employed clients secure mortgages.
Clear and Honest Advice: We provide straightforward, transparent guidance to help you navigate the process.
Strong Reputation: Founded in 2009 by Darren Barrett, we’ve built our business on referrals and trust.
Contact Us Today
If you’re self-employed and looking to get on the property ladder, Barrett Mortgages can help. We specialise in securing mortgages tailored to your needs, so you can focus on growing your business while we handle the complexities.
Get in touch with us today to learn more about how we can help you secure the perfect mortgage.
