When you’re working hard as a freelancer or running your own business it can be frustrating and time-consuming to find an affordable mortgage that meets your needs.
Finding the right lender can be challenging and many will only look at your salary and dividends, while others might consider salary and net profit.
Understanding your priorities
With plenty of experience of large mortgages up to 95% loan to value (LTV), we understand that you want your financial arrangements to make the best use of your resources.
At AJM Financial we understand that company directors often want to leave capital in their business. We can add value and source the right bespoke mortgage and protection package to allow you to buy your ideal home with confidence and to continue to grow your business
Your mortgage application
In many cases you can access the same types of mortgages as an employed person, but you will need to provide lenders with different information.
Generally, you will need to provide certified accounts for your business for at least two years. If your income varies dramatically, we can advise you about providing evidence of your future income with an accounting certificate. You will also be asked for your tax returns for the last two or three years, depending on the requirements of the lender.
However, we understand that every business is different, so we are always flexible and have a wide range of options to suggest to you, even when your finances are complex.
How to make things easier
The larger your deposit, the easier it will be for you to find a mortgage at a competitive rate. For your first house purchase, ideally aim to save 15% of the price of your new home to reduce the interest rate you will pay.
If possible, paying outstanding debts, closing old bank accounts and making sure your name is on the electoral roll will all help to establish your overall credit profile.
You will also be asked about your regular spending, so it’s helpful to have an accurate picture.
If you’re a sole trader but you are considering setting up a limited company or partnership, find out in advance whether this is likely to affect your mortgage application.