| Self employed | ||
We have long specialised in self employed people including company Directors. Directors are considered to be self employed by lenders regardless of the definition the Inland Revenue might use. 1 day trading – a couple of lenders allow newly established business owners to predict their income, but of course for such schemes larger deposits tend to be required. 6 months trading – Some lenders will allow just 6 months trading figures and up to 90% borrowing. No accounts – Self Cert mortgages are designed for those that have difficulty proving income, although you will be required to sign confirmation as to your income level and certain documents could be requested such as recent trading invoices. Offset mortgages – Many self employed people have cash balances, perhaps their future Tax money languishing in Bank accounts earning low returns. As a result some use offset mortgages that can really sweat all your money, which means the mortgage payments and term can reduce as a result. See ‘Types Of Mortgage’. What is my income? As far as lenders are concerned your personal income is that which remains after all other business expenditure has been met. Certain items such as ‘depreciation’ can be added back into income as lenders might not consider such expenses as ‘real’. Directors tend to have dividends and a net annual profit both of which can be considered. Fast track – some prime lenders may not request income proof where their credit scoring assessment gives a high score. This can mean access to prime rates for self employed people, but beware such lenders make random spot checks and can ask for income proof at any time, even after completion. This is not the same as self cert. |