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.
How long do I need to be self employed to get a mortgage?
As a minimum you will have to provide 1 years accounts. Most high street lenders will want to see 2-3 years of accounts, however a select few will accept 1 years accounts. There are also more specialist lenders available through brokers who will lend to self employed applicants.
How to get a self employed mortgage in Chelmsford?
Simply complete the above online enquiry form where you will be able to schedule a call with a mortgage adviser. We recommend you have these documents available for the call:
Latest and previous years accounts if applicable.
Credit Report from either Experian, Equifax or CheckMyFile, so we can understand your credit profile and credit commitments. If there will be 2 applicants on the mortgage we will need to see both your credit reports.
Bank statements – This is so we can understand all your outgoings and make sure any mortgage we recommend is affordable.
By having these documents ready for the call it will ensure you can get the most out of the call and get the mortgage advice you are seeking.
Most lenders will be happy to lend to either employed or self employed applicants, however each lender has their own criteria which you will have to qualify for. This is where obtaining a mortgage through a broker who is experienced with Self employed applicants is really helpful.