Self Employed Mortgage Advice in Doncaster

We regularly converse with customers who have perhaps encountered difficulty in approaching their bank directly for a mortgage. A couple of the reasons that we have heard for this happening have included;

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

Definitely make sure that you don’t go about approaching various different lenders by yourself, especially if you’re unsure of what their lending criteria is. Doing so can cause more harm than good when it comes to your credit score and may even stop you getting a mortgage full stop.

We work quite often with different self-employed mortgage customers, all of whom require some fast & friendly mortgage advice in Doncaster.

Below we have put together a small selection of scenarios that we have encountered throughout our time as a trusted mortgage broker in Doncaster, when speaking to self-employed mortgage applicants:

• As a self-employed owner of a business, your income is a combination of either salary, dividends or a directors’ loan.
• Your company is quite busy at the moment and you need assistance from a trusted mortgage advisor in Doncaster.
• 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.
• Despite your credit score being great, you just don’t seem to match the banks’ strict lending criteria.
• You’re a company owner, a director, a sole trader or you are a business partner, requiring expert self-employed mortgage advice in Doncaster.
• The bank is limiting the amount you are able to borrow and you are looking to borrow more than what they can offer.
• Your net profit is not steady.

Generally speaking, banks are not always great options to take if you are a self-employed mortgage applicant. These banks have automated systems and sadly, regardless of how long you’ve been banking with them or the amount of money you often pay into your account, if they decline you, there’s not a lot you can do about it with them.

This is where a mortgage broker in Doncaster is useful, as our experienced team are able to match up your needs and current financial situation to the different lenders mortgage criteria, hopefully giving you the edge and allowing you to continue with the process.

A lot of the high street mortgage lender that might come to mind will use their in-house credit scoring policies when deciding on who they will allow to take out a mortgage. These credit scoring policies are usually inspired by the mortgage lenders own experience with mortgage applicants over the years.

When they do their checks, they will analyse previous mortgage repayment statistics, any historical repossession data and other common patterns in order to determine common denominators that are deemed high risk. This saves time and money for the lender, but leaves a lot of self-employed mortgage applicants struggling to obtain a mortgage.

In the past, you could probably correctly estimate that mortgage lenders have had a lot more self employed applicants fall end up going into debt than regular employees. On the other side of the coin,those regular applicants probably didn’t have to jump through nearly as many hoops to find mortgage success.

If you’ve been researching by yourself, you’ll likely know that lots of high street lenders have very strict lending criteria, with a lot of the lenders out there wanting to see your profits increasing three years accounts minimum, with some working off a three year average.

Whilst not all mortgage lenders work by these rules (with some only requiring one years of accounts), you should always make sure you have a couple of years to work with, as this will give you a boost in possibly obtaining a mortgage.