Being a Mortgage Broker in Hull, we understand that going through a mortgage application process as a self employed applicant can be challenging. You might be struggling to meet different lender’s criteria, or are having trouble evidencing your income. A self employed applicant have a different mortgage journey compared to an employed applicant when it comes to securing a mortgage offer.
Many applicants would love to be treated the same on their mortgage journey. The reality of it is that lenders need to be assured that you, as a self employed person, is able to afford a mortgage. The following factors lenders may look at include:
– Your income/salary
-Your previous years of accounts’
-Business operating costs and expenses
-Bank statements
Our Mortgage Advisors in Hull take each applicants situation as an isolated case which is why they can help you secure a self-employed mortgage product always keeping in mind your personal and financial circumstances.
We know that some mortgage process can have its up and downs, nevertheless, we will always be there to provide support and guidance throughout the full process like supporting you when you need to back up your application through evidencing your income and years of accounts’.
As your local Mortgage Broker in Hull, we can search through 1000s of competitive self employed mortgage products. As soon as you have agreed with the deal we have found for you and are wanting to proceed, it’s then time to begin your mortgage application.
We understand every applicant have different working environments which is why our hard working advisors are available 7 days a week if you need to get in touch at a time that suits you. Speak to Mortgage Advisor in Hull and book yourself in for a free self employed mortgage consultation today.
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.
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.
There are a variety of lending criteria all depending on the lender, in relation to self-employed mortgages. With this in mind, our dedicated Mortgage Advisors in Hull strive to appropriately match you up with the most appropriate lender for your personal circumstances. This is something we intend to get right the very first time.
Furthermore, we are proud to provide a tailor like service to the customer in question. We work with the customers interest at heart which is why we are here til late to answer any mortgage questions you may have.
Through our rich knowledge and experience in the mortgage industry, we have helped a plethora of customers that are limited company owners, sole traders, partners that receive a salary, dividends or a mixture of both, Our expert team always works hard to try and find solutions for those who are looking for support with their mortgage.
With our mortgage market expertise, we are able to find you the most appropriate mortgage that benefits your personal and financial circumstances.
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.
Reasons we have heard for this include:
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.
Our free initial mortgage consultation will last roughly one hour. Lucky for you, as an experienced Mortgage Broker in Hull, we can turn around an Agreement in Principle within 24 hours. All we need is a quick phone call to gather the necessary information. A formal mortgage offer takes about three to four weeks on average.
If you’re an employee, you will usually have to supply three payslips and the latest P60 to prove your income. If you are Self Employed in Leeds, it is typically the latest two years’ tax calculations and correspondings overviews. You will also need to provide proof of ID (Driving license or Passport). Proof of Address (Utility bills, tax bills or credit card statements) and three months’ bank statement. You are proving the deposit built up with an explanation for any significant credits.
The good news is it may be possible to get a mortgage if you are self-employed in Hull. To qualify, you need to submit at least one years’ accounts. Doing so will help to increase the likelihood of obtaining a mortgage. Most lenders take a look at your salary plus dividend to calculate the maximum mortgage amount. Others may go off your net profit. It all depends on the lender.
The good news is that you may find it a bit more challenging to obtain a mortgage despite having previous credit issues on your record. But it doesn’t mean it’s impossible, and you may still be able to get one! It just means that some Lenders may ask for a slightly higher deposit of around 10-15%.
Most high street mortgage lenders will usually ask for a minimum of a 5% deposit. This percentage may be higher depending on your previous circumstances, e.g. if you’ve had any past credit issues.
The good news is it is possible to have two mortgages in Hull running simultaneously, as long as you can afford to repay the monthly instalments on each of them. If you’re looking to accomplish something like debt consolidation or home improvements, you may be able to place a second mortgage on your home.
An Agreement in Principle typically lasts for 30-90 days. However, this timeframe is up to the Lender. If your Agreement in Principle expires, worry not; you can renew it by getting back in touch with your Mortgage Advisor in Hull.
As a Mortgage Broker in Hull, we recommend that you obtain an Agreement in Principle (AIP) as soon as you can, preferably before you start viewing properties. Having an Agreement in Principle in place when you are viewing houses could potentially allow you to negotiate prices.
Our mortgage process consists of multiple different steps. The first step is to get in touch, and one of our trusted mortgage advisors in Hull will carry out a Fact Find to get a bigger picture of your mortgage situation.
Secondly, you’ll undergo your free mortgage consultation, and your assigned dedicated Mortgage Advisor in Hull will begin searching for mortgage deals that match your circumstances. If they find you an offer that you are happy to proceed with, we can get the ball rolling with your mortgage application.
Next, they will perform a credit check on you to obtain an agreement in principle. Some evidential documents will be required from you to help back up your mortgage application.
Lastly, they will submit your mortgage application and wait for a formal mortgage offer to be issued.
Your free initial mortgage consultation with your dedicated Mortgage Advisor in Hull will last around an hour. During this consultation, we will get to learn a bit more about your mortgage needs and what you are looking for. Once we know more about your personal and financial situation, we will start looking for mortgage deals that will match you perfectly.
A telephone call where we can take some initial details and find out about your plan of action to get to know your Self Employed situation a bit better.
You can take some time out to browse potential properties in Hull.
Make an offer on the property in Hull that you have your eye on – we’ll finalise your figures and help you get your best deal as a Self Employed applicant.
Our Mortgage Advice and recommendations. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
A telephone call where we can take some initial details and find out about your plan of action.
Enjoy finding a property!
Make an offer on the property you set your heart on – we’ll finalise your figures and help you to get a good deal.
Our mortgage recommendation. We’ll try to find you the best mortgage deal. We’ll be there to support you, right through to you getting your keys.
