Self Employed Mortgage Advice in Manchester

The majority of high street mortgage lenders that spring to mind will use their own in-house credit scoring policies in order to determine whether or not a customer can take out a mortgage with them. These credit scoring policies are usually based on the history of that mortgage lender during their time within the industry.

When they do this, they will look at previous statistics for mortgage repayments, any repossession information and other patterns, in order to figure out what, to them, is considered high-risk lending. History has shown that Self-Employed applicants have fallen into arrears a lot more often than regular employed applicants, making their process a lot more difficult.

If you’ve been researching, you might know that the majority of high street lenders have very strict lending criteria, with a lot of them wanting to see your profits increase over a minimum of three years accounts. Some may take a three year average instead.

This isn’t the case with all mortgage lenders (some may only require one years’ worth), it’s always better to have more to hand, just in case. The reason for this is that it will likely increase your chance of mortgage success.

During our time as a mortgage broker, we have increased our experience levels when it comes to helping limited company owners, sole traders and partners that receive a salary, dividends or a mixture of the two. We use our expertise to find our customers solutions for their mortgage problems.

We regularly converse with customers who for one reason or another, have found difficulty in approaching their bank for a mortgage. Some of the reasons they have been given for this include;

• Failed banks criteria
• Bank won’t lend enough
• Pay structure
• Credit score
• Fluctuating net profit
• Personal situation

We would always recommend that you refrain from approaching various different lenders by yourself, especially if you are unsure of how their lending criteria works. If you attempt to do this yourself and come up short, you could negatively affect your credit score and potentially harm your chances of getting a mortgage at some point in the future.

We work alongside a wide variety of self-employed mortgage customers on a regular basis, all of whom need the services of an open & honest Mortgage Broker in Manchester.

Below we have put together a small selection of mortgage scenarios that we have come across when speaking to Self-Employed applicants during our time as a mortgage broker in Manchester:

• As a self-employed business owner, your income is made up of a combination of either salary, dividends or directors’ loan.
• Your company is currently experiencing a particularly busy business period and you require the services of a mortgage advisor in Manchester to help you through your mortgage process.
• You prefer to leave the vast majority of your net profit within your company, as opposed to paying yourself a much bigger salary.
• Your business has been trading for less than one year.
• Even though you have a really good credit score, you aren’t matching up to the banks’ strict lending criteria.
• You are the owner of a company, a director, a sole trader or are a business partner, requiring self-employed mortgage advice in Manchester.
• The bank is putting a limit on the amount you can able borrow, which is less than the amount you need.
• You have an unsteady net profit.

Typically speaking, if you are a self-employed mortgage applicant, going to your bank for mortgage advice in Manchester is not the best of ideas. This is because the banks have automated systems. Unfortunately, no matter how many years you have been banking with them or how much goes into your account, there’s not a lot you can do if you get declined.

When you are encountering mortgage difficulty, you may need to enlist the help of a mortgage broker in Manchester, like us. We can step in and take a look at your case, matching up your needs and your current financial status to various lenders mortgage criteria. It is our hope that in doing so, we will help your mortgage journey to continue.