Self Employed Mortgage Criteria Advice in Doncaster

Self Employed Mortgage Criteria Advice in Doncaster

Self Employed Mortgages in Doncaster

Self employed applicants can sometimes encounter hurdles when obtaining a mortgage.

The good news is with the support of an experienced Mortgage Broker in Doncaster working by your side, we may be able to overcome these mortgage hurdles together.

First things first, there are specific lending criterias that fit sole traders and Limited Company Directors. Each lender has its own policy and the maximum amount they will allow you to borrow can vary between lenders.

Sole Traders or Partners 

The maximum amount you can borrow for a mortgage will be assessed on your net profit, this can be confirmed by speaking to your Accountant, or direct from the Inland Revenue.

Some lenders average your last two or three years’ net profit but other lenders use your latest year. If your net profit has decreased the lender will usually base everything on the latest year and you will have to explain why it has dropped.

Limited Company Director (20-25% or more shareholder) 

Any Limited Company Director who owns 20-25% or more of the shares in the business, will be deemed by lenders as a self employed applicant.

The same rules are applied with the averaging too, as the average figure will be worked out by your salary and declared dividends.

At some point, your Limited Company will be performing well in terms of net profit but the Directors are not drawing their dividend – these types of applications can impact the maximum borrowing capacity because they aren’t able to declare as much income.

There are some lenders out there that will consider using your share of the net profit, as opposed to salary and dividends.

Minimum Trading Period 

The minimum trading period for any applicant who are Self Employed in Doncaster or Limited Company Directors is one year. That being said, some lenders will want to see two or three years more.

If you have recently formed a Limited Company after a period as a sole trader under the advice of your Accountant, then there are other lenders out there who can look into this, depending on if it’s the same line of work.

If you would like to further discuss your options, don’t hesitate to get in touch and book your free mortgage appointment today to speak with a Mortgage Advisor in Doncaster today.

They’ll guide you through your process. We can also send you a form for your Accountant to complete, which will help us tailor-make a recommendation designed to meet your personal situation. 

Self Employed Doncaster


Doncastermoneyman.com & Doncastermoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

The information contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
Should you have cause to complain and you are not satisfied with our response to your complaint, you may be able to refer it
to the Financial Ombudsman Service, which can be contacted as follows

The Financial Ombudsman Service, Exchange Tower, London, E14 9SR
www.financial-ombudsman.org.uk

© 2023 Doncastermoneyman

Doncastermoneyman, 3 Cavendish Court, South Parade, Doncaster, DN1 2DJ.

Moneyman Logo







Moneyman Logo

[sg_popup id="9192560" insidePopup="on"]
[/sg_popup][sg_popup id="9192563" insidePopup="on"]
[/sg_popup]
[CP_CALCULATED_FIELDS id="10"]

Moneyman Logo




Moneyman Logo

[sg_popup id="9192560" insidePopup="on"]
[/sg_popup][sg_popup id="9192563" insidePopup="on"]
[/sg_popup]
[CP_CALCULATED_FIELDS id="10"]

Moneyman Logo

Ask Your Question





    Moneyman Logo

    Moneyman Logo







    Moneyman Logo

    Book your Free Consultation

    7 Days 8am - 10pm

    Moneyman Logo

    Moneyman Logo

    [sg_popup id="9192560" insidePopup="on"]
    [/sg_popup][sg_popup id="9192563" insidePopup="on"]
    [/sg_popup]
    [CP_CALCULATED_FIELDS id="10"]

    Moneyman Logo