Self Employed Mortgage Advice in Birmingham

We have worked with many self-employed applicants in the past, who required some expert, fast and friendly Mortgage Advice in Birmingham. Below we listed a selection of popular self-employed scenarios our advisors have faced over the years when speaking to self-employed applicants like yourself:

• You are an owner of a company, a director, a sole trader, or a business partner, requiring expert self-employed Mortgage Advice in Birmingham.
• The bank will only offer you a small amount to borrow, and you want to see if you can borrow more.
• As a self-employed business owner, you are paying yourself a combination of salary, dividends or a directors’ loan.
• You leave most of your net profit sitting in your company instead of paying yourself a larger salary.
• Despite having a great credit score, you don’t match the banks’ strict lending criteria for one reason or another.
• You have an unbalanced net profit.
• The business has only been trading for 1 year.
• Your company is going through a busy period, and you need the assistance of a Mortgage Advisor in Birmingham.

Banks are not always the most suitable options for self-employed applicants to speak to directly. Most banks have automated systems, and unfortunately, no matter how many years you have been banking with them or how much money you pay into your account regularly, you are out of luck if they say no.

Lucky for you, one of the many benefits of using a Mortgage Broker in Birmingham like Birminghammoneyman, we may be able to help. Our advisors can match your circumstances and current financial position to see if we can match you to the most suitable Lender, giving you a better chance of achieving your mortgage goals.

Most high street mortgage lenders will have their own in-house credit scoring policies when deciding on who can have a mortgage. These credit scoring policies tend to be based on the mortgage lenders own experience with mortgage applicants over their own tenure.

During their checks, they will have a look at previous mortgage repayment statistics, any historical data on repossession and other common patterns in order to determine the common denominators that are considered to be a high risk. This will save the lenders time and money, but leaves a lot of self-employed mortgage applicants without a leg to stand on.

Previously you could definitely have made a strong case for the argument that lenders were experiencing high numbers of self-employed mortgage applicants falling into arrears. On the other hand, their self-employed applicants probably also had (and still do) a trickier time applying for that mortgage than other customers.

If you’ve been doing some of your own research, you’ll probably be aware that high street lenders tend to have very strict lending criteria. Many of those mortgage lenders want to see your profits increasing over three years accounts minimum, with some basing their work off a three year average.

Whilst this doesn’t apply to every mortgage lender out there (with some only requiring one years of accounts), it is always recommended that you have more than just the one year to go off, as that will increase your mortgage options.

Follow our ‘Book Online’ form and book yourself in for a free initial mortgage appointment; Self Employed mortgage advice in Birmingham is around the corner!

Most high street mortgage lenders you can speak to will use their in-house credit scoring policies when assessing their customer’s mortgage applications. These lending policies and scoring systems are based on the mortgage lenders’ own experience working in the industry.

Lenders will analyse previous mortgage repayment statistics, repossession information and other common patterns to determine whom they believe would be risky to lend to—saving them both time and money. However, it can leave a lot of self-employed applicants without a way to achieve their mortgage goals.

As we said, you will find that the vast majority of high street lenders out there have stringent criteria, and many want to see your profits increasing over a minimum of 2/3 years accounts, with some taking an average over three years.

Whilst this doesn’t apply to every Lender, we recommend it’s always better to make sure you have a good few years to help increase your chance of obtaining a mortgage.