Popular Self Employed Scenarios
We regularly work with self-employed mortgage customers, from a variety of different backgrounds and each with their own unique case and in need of fast & friendly mortgage advice in Bristol.
Below we have compiled a small selection of commonly occurring mortgage scenarios that we have seen during our time as a trusted mortgage broker in Bristol, when we have gotten in touch with self-employed mortgage applicants:
- You leave a large portion of your net profit within your company, rather than paying yourself a salary that is larger.
- Your business has not been trading for over one year.
- You’re a company owner, a director, a sole trader or you are a business partner, requiring expert self-employed mortgage advice in Bristol.
- The bank is limiting the amount you are able to borrow and you are looking to borrow more than what they can offer.
- As a self-employed owner of a business, your income is a combination of either salary, dividends or a directors’ loan.
- Your net profit is not steady.
- Your company is quite busy at the moment and you need assistance from a trusted mortgage advisor in Bristol.
- Despite your credit score being great, you just don’t seem to match the banks’ strict lending criteria.
As a general rule of thumb, you’ll find that banks aren’t always the best routes for you to take, especially if you are a hopeful self-employed mortgage applicant. The banks will have their own automated systems, and whilst you may have been banking with them for quite some time or you pay money into your account regularly, once you’ve been declined, that’s pretty much the end of the road with that option.
It’s at this point where a mortgage broker in Bristol will truly come in handy, as our team of experienced and affable mortgage advisors in Bristol will be able to match your needs as a home buyer and your current financial position up to the appropriate mortgage criteria. It’s our hope that this allows you to further yourself and continue on with the mortgage process.
Self Employed Customers & Bank Mortgage Advice
Many of the high street mortgage lenders that you may think of, will be using their own in-house credit scoring policies in order to decide who they will allow to take out a mortgage. These policies are typically inspired by that lenders own experience with mortgage applicants over a number of years.
During these checks, they will take a look at any previous mortgage repayment statistics, things such as historical repossession data and other frequently repeating patterns in order to determine common denominators that will be considered a higher risk. This will save their time and money, but can often leave many of their self-employed mortgage applicants struggling to get a mortgage.
In years gone by, it was probably likely that you could accurately estimate that many mortgage lenders would have more of their self-employed applicants falling into debt than regular employed applicants would have. Then again, you could also argue that those regular employed applicants wouldn’t need to clear nearly as many obstacles to get a mortgage.
If you’ve been doing your own mortgage research, you’ll likely be aware that there are lots of high street lenders with incredibly strict lending criteria. Many of these mortgage lenders, if you’re a self-employed mortgage applicant, will want to see your profits increasing on three years accounts minimum, though some will work off a three year average.
Whilst these rules won’t apply to every mortgage lender out there (some may only require one years of accounts), it’s always handy to have a couple to hand, to make sure that you have the advantage when it comes to finding the best deal for you.
Self Employed Mortgage Advice in Bristol
Depending on the mortgage lender that you are being matched up with, lender criteria can greatly vary. This is especially the case when regarding self-employed mortgages.
Our team of team of open and honest mortgage advice experts in Bristol will always work hard in order to make sure that you are matched up with the most appropriate mortgage lender for your case, aiming to get this recommendation right the very first time around!
Unlike many of the different mortgage advisors in Bristol that you may come across when researching different mortgage choices online, we’re proud to say that we offer a personalised service, always ensuring that we have our customers best interests at the heart of everything we do.
Across our experience as a dedicated and hard working mortgage broker in Bristol, we have gained an in-depth knowledge of mortgage criteria and how to help with people who are limited company owners, sole traders, partners that are receiving a salary, dividends or a mixture of both.
Having Mortgage Problems?
We regularly speak with self-employed customers who perhaps have come across a particularly challenging experience when they have gotten in touch with their bank directly. The most frequent topics that come up when we speak to these customers are;
- Failed banks criteria
- Personal situation
- Credit score
- Bank won’t lend enough
- Fluctuating net profit
- Pay structure
You should always make sure that you don’t approach too many different lenders by yourself, especially if you are particularly unfamiliar with their lending criteria. Doing this could cause a lot more harm than you would actually intend to, lowering your credit score and potentially stopping you from getting a mortgage altogether.