Self Employed Mortgage Advice in Nottingham

If you approach a high street lender to determine if you are allowed to take a mortgage out, it is very likely that they will use their own in house credit scoring policies.

The policies in place for credit scoring are based on historical data from the mortgage lenders own experience and past during their time within the mortgage industry.

Lenders will look into data like previous mortgage repayment statistics and any other information they will on repossession as well as other patterns.

By doing this, the lender can see which factors would be seen as high risk when lending. Even though this policy can be a daunting hurdle to get over from a self-employed applicant’s point of view, it can save the lender time and money.

Through their experience, mortgage lenders would likely agree that more self-employed applicants have fallen into arrears than anyone who is a regular employee. As well as this, it’s accurate to say that it’s very likely that those employed applicants had more of a straightforward experience in the mortgage process compared to self-employed applicants.

If you have done some research into mortgages for the self-employed, you may know that a large amount of high street lenders out there have very strict lending criteria with some wanting you to provide evidence of your profits increasing over at least three years accounts, with a few taking a three-year average.

You might find that some mortgage lenders only require one year of accounts, however, it can be helpful to have a few to show as a backup as this could increase your chances of obtaining a mortgage.

When customers get in touch with Nottinghammoneyman, we find many get in contact with us after approaching a bank for a mortgage and have left finding it a difficult experience. Some reasons for this include:

• Failed to meet the bank’s criteria
• Net profit has fluctuated
• Personal situation
• The bank has offered you an amount that is below what you wanted
• Salary Structure
• Credit Score

We do recommend that you refrain from approaching different lenders on your own, especially if you have little understanding of their lending criteria.

This can result in you not getting a mortgage altogether as well as having a negative impact on your credit score.

On a regular basis, we work with a wide range of different self-employed mortgage customers who are in need of open and honest Mortgage Advice in Nottingham.

Below shows a small number of different scenarios that we have encountered as a Mortgage Broker in Nottingham when dealing with applicants who are self-employed.

• Being a self-employed owner of a business, you are being paid an amalgamation of either salary, dividends or a directors’ loan.
• You’re looking for an expert Mortgage Advisor in Nottingham to help you through the full mortgage process while your company is going through a busy business period.
• You leave a lot of your net profit sitting in your company rather than paying yourself a salary.
• Your business has been trading for less than a year.
• You don’t seem to match the banks’ lending criteria even though you have a great credit score.
• You are either a company owner, a director, a sole trader or a business partner who is looking to obtain self-employed Mortgage Advice in Nottingham.
• The amount you are looking to borrow is more than what the bank wants you to borrow.
  You have an unsteady net profit.
• Banks can sometimes not be the best place for self-employed mortgage applicants who are seeking Mortgage Advice.

This can be due to the automated systems banks utilise in order to see the most suitable mortgage route for you. Furthermore, if you do get declined by the bank there is nothing else you do with them to help regardless of your loyalty to the bank or how often you pay into your account.

At this point, it’s best that you look down the route of approaching a Mortgage Broker in Nottingham to give you insight into how they can help you. Our diligent team can look into your personal and financial circumstances.

By doing this, we can match up your financial situation to the most appropriate lender mortgage criteria which can help you proceed on the mortgage journey.