I’m a company director and my wife, Ayesha, is a sole trader. We had a mortgage from before we were self-employed, but with house prices constantly on the rise, we decided in 2015 that it was time to move so started looking for our dream home. We approached our existing lender, however, their procedure for determining how much you can borrow wasn’t favorable for our self-employed status.
We really wanted to increase our mortgage, so here’s what we did:
1. Approached each and every lender that was offering mortgages for the self-employed. I needed to understand the different assessment processes, so I spoke to the underwriters to determine how they assess income, their criteria and what else would impact the amount of money we could borrow.
2. Found the most suitable interest rate. With this information from the lenders, I was able to play around with mortgage amount and test figures with different lenders. I could then find the maximum that we could borrow with the cheapest interest rate.
3. Double-checked we’d be accepted. Once I had my full application ready, I went back to the underwriter to ensure our self-employed mortgage would be accepted.
Thanks to my research and rigorous process, our application was successful and we happily moved into our new home in October 2015.
Getting a mortgage as a limited company director has been the hardest mortgage that I have ever had to do, but it did start me on my path to help others who are self-employed and want to get a mortgage.
Today date 1st September 2017, Active Brokers have had success with 168 mortgage applications for company directors and sole traders. Resulting in around £39.3 million worth of lending!
I hope my story can be of some use. My advice to anyone looking for a self-employed mortgage is to prepare and start thinking 12-24 months ahead of when you want to buy. Majority of the issues I have faced and the clients I have not been able to help are due to not being prepared. So make sure you do lots of research and have all of the information well in advance. Alternatively, I recommend using the services of companies like mine, Active Brokers. The job of my team is to find you the most suitable mortgage interest rate for the amount that you need to borrow to buy or re-mortgage your dream home, and they do all of the leg work for you, too.
If you have any questions or concerns about how to get a mortgage when you’re self-employed, then please do get in touch. I am more than happy to answer any questions and assist you in any way that I can.
Equally, if you’ve had success with getting a self-employed mortgage by going directly to a lender, I’d love to hear your story.
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