Self Employed Mortgages Chelmsford

If you live in Chelmsford in the heart of Essex and want to know more about what mortgages are available to people who are self employed you are at the right place.

How much can I borrow?

This is one of the most common questions that we get asked. To obtain a self employed mortgage you will need to provide evidence of your income which is shown through your tax calculations and/or your accounts. Lets break this down further based upon the company structure:

• Sole Trader - To prove your income you will need to provide a copy of your accounts which will show the turnover, expenses and your Net Profit. The Net Profit figure is your income and you will pay income tax based upon this figure.
• Limited Company - Your company accounts will show the turnover, expenses and the net profit the company made, however most lenders will want to see evidence of what income you took from the company (salary & dividends) and this is evidenced through your tax return.

As a guide lenders will lend around 4.5x your income (Net profit if Sole Trader or if LTD company the income on your personal tax calculations). Other factors also affect the borrowing amount such as:

• Term of the mortgage.
• Financial dependants such as children/partner.
• Credit Commitments such as loans &/or credit cards.
• Credit Profile – if you have bad credit registered and have a low credit score.

The best way to establish how much you can borrow is to speak to a self employed mortgage adviser who is experienced in this complex lending area.