If you have your own business then it is more than likely that you are self-employed, getting a mortgage can be difficult as lenders look at the health of your company to assess whether you are mortgage-worthy.
When the health of a company is scrutinised, lenders are looking at two things for their assessment, the profit it makes and taxes it pays as a consequence of the profit it makes. Getting a mortgage can be a very difficult task especially as your accountant will be trying to minimise your profits in the most tax efficient way!!!
How can you prove your income?
It all comes down to proving your income from your company, this is what the lenders want to see, and this how they will base what they are willing to lend to you. If you are operating a fairly new business without a reputable track record or you have tax-efficient books prepared by your accountant, or you draw part of your income in dividends, lenders from the high street may not be prepared to give you a mortgage, even if you feel that the repayments will be manageable.
When you apply for a mortgage, you will probably be applying for a normal residential mortgage, nevertheless, because you own your own business, you are self-employed you’ll have to provide significantly more paperwork to prove your income – so you’ll need to make sure you have your accountant on standby, who in turn should have your tax return ready.
Mortgage advice from Rainstone Financial Services
We have a wealth of experience in mortgages that boosts relationships with nearly every lender from the high street to the challenger banks, our advisers have paved the way for hundreds of self-employed individuals to find the right product for them from the whole of the market.
Our unique approach is to get to know our clients, understanding their individual situations, assessing the pitfalls, and then to packaging a personal case to a specialist self-employed mortgage lender we know are best placed to approve your mortgage.
This might include approaching lenders who:
Consider net profits of the company, adding back in your drawings so that they have a better understanding of your probable annual income
Understand business finance and can look behind the scenes, and therefore understand your accountant’s tax-efficient statements to assess your real income
Will allow us to communicate directly with the lender’s underwriters and make a personal case based on a wider view of your potential earnings.
Understand the burden of self-employed individuals and can work swiftly to get a lending in place.
Here at Rainstone Financial Services, we are independent brokers, our affiliation is with no one lender, our advice is based on your needs. Before we speak to any lenders will we fully understand your situation and based upon that we will secure the best possible products, at the best possible rates. We cover London, Essex & its surrounding areas – Southend, Chelmsford, Colchester, Walthamstow and more.
Give us a call on 0333 339 0038 and one of our experts will carefully assess your circumstances.