Self Employed Mortgage Advice in Hull

You will find that every high street mortgage lender will use their in-house credit scoring policies when deciding if a customer is allowed to take a mortgage out with them.

These credit scoring policies are usually based on historical data from the mortgage lenders own experience and past during their time within the mortgage industry.

Data will be collated through lenders looking at previous mortgage repayment statistics as well as any information they will have on repossession and other patterns.

This will determine what would be seen as a high-risk when lending. Having this policy in place can save the lender both time and money, however, can become a struggling aspect of the mortgage journey in the eyes of a self employed applicant.

As years have gone by, mortgage lenders would probably agree that a lot more self employed applicants have fallen into arrears than anyone who is a regular employee. Furthermore, it’s best to point out that it’s very likely that those employed applicants had a pretty smooth journey in the mortgage process in comparison to self employed applicants.

Something that you might be aware of through research is that a large number of high street lenders out there have very strict lending criteria, with some requesting to see your profits rising over at least three years accounts, with a few taking a three year average.

Even though these rules don’t always apply to all mortgage lenders (with some only requiring one years’), having a handful of years to go off as a backup can be better because it can likely increase your chance of getting a mortgage.

When dealing with customers on a regular basis, we find many come to Hullmoneyman because they have approached a bank prior for a mortgage and have found it a challenging experience.

• Failed to meet the bank’s criteria.
• Net profit has fluctuated.
• Personal circumstance.
• The amount the bank has offered you isn’t enough.
• Salary structure.
• Credit Score.

Approaching various different lenders on your own is something you should avoid doing, in particular if you don’t have a lot of understanding with their lending criteria.

By doing this you are risking you getting a mortgage altogether as well as impacting your credit score negatively.

We have worked with many self employed applicants on a regular basis all with different situations, but are all in need of open & honest Mortgage Advice in Hull.

This section highlights some of the scenarios that we have faced with our experience as a Mortgage Broker in Hull, when dealing with self employed applicants.

• Being a self employed owner of a business, you are paid a combination of either salary, dividends or a directors’ loan.
• You’re in need of a trusted Mortgage Advisor in Hull to take you through the full mortgage process while your company is in the midst of a busy business period.
• Instead of paying yourself a salary that is larger, you leave most of your net profit sitting in your company.
• Your business has been trading for less than a year.
• You have a great credit score, however, you don’t seem to match the banks’ strict lending criteria.
• You’re in need of self employed Mortgage Advice in Hull as a company owner, a director, a sole trader or a business partner.
• You are looking to borrow an amount that is more than the amount the bank are allowing you to borrow.
• You have an unsteady net profit.

You might find that some banks are not always the best place for self employed mortgage applicants who are seeking Mortgage Advice.

The reason is that these banks have automated systems that determines your mortgage route and even if you have been with the bank for a certain amount of time or how often you pay into your account, getting declined means there is nothing else you can do with them to help.

In these times, it’s that you look at having a Mortgage Broker in Hull by your side to see what they can do to help. From here, our hard working team are able to evaluate a customer’s personal and financial needs.

From this, they can match up your financial position to the most suitable lender mortgage criteria, which can hopefully progress you on the mortgage journey.