Self Employed Mortgages

There are many perks to being self-employed or owning your own company including the flexibility to choose your hours and being in control of your own finances.

However, one of the biggest challenges that many business owners and directors face is trying to get a mortgage.

This, in part, is down to the fact that lenders do not always consider the “full picture” of the business when it comes to making a decision about whether or not to approve your application.

For example, lenders may not take into account the fact that some directors may deliberately take a modest salary and choose to keep the profit within the business instead.

Many lenders currently ask for three years’ accounts to prove income on a mortgage application, which can make it difficult for new business owners to get approved.

Directors who face differing levels of annual turnover can also encounter problems when “averaging calculations” reduce the amount of capital available to borrow.