Cashback

We have many lenders who can assist in this situation, it is important to know if you are a sole trader, a lender is going to work off your ‘Net profit’ declared to HMRC as a basis for affordability. If you are a director of a Ltd Co, then we can use either salary and dividends or your share of company net profit and salary, whichever option gives you the affordability you require.

The old system of 3.5 or 4 x your income is gone and now we need to know all your income sources together with all your debt details. We then use a multi lender affordability system to calculate your borrowing ability from over 50 lenders in a single go. It is important not to take on new debt before you are considering a mortgage as any and all monthly payments to debts reduce the level of income to be used in calculating affordability. As a ‘guide’ if you multiply by 12 ALL your monthly payments to loans, HP agreements and credit card payments (using 5% of the balance as a minimum payment) and deduct from your total income and then multiply by 4 you will not be far away, but this needs finalising by your adviser.

There are many factors that can influence how a lender looks at a self employed applicant, for example: how long have they worked self employed, do they have 2 yrs tax documents as evidence, what size of deposit have they saved, do they need a high loan to value, are they showing a healthy profit and many more, we are here to navigate all these issues for you. It does not have to be a daunting experience