At Mortgages Remortgages – Mortgage Broker, your super-friendly Mortgage Advisor in Doncaster, we get many self-employed applicants worry about how much they can borrow for a mortgage, and if they can even qualify.
At Mortgages Remortgages – Mortgage Broker, your super-friendly Mortgage Advisor in Doncaster, we get many self-employed applicants worry about how much they can borrow for a mortgage, and if they can even qualify. The business they run may have been performing well, however, some try and keep their tax liability as low as possible, so they can reinvest in their business.
Usually, accountants often encourage putting their expenses through as high as possible, to keep profits at a minimum. This, unfortunately, leaves them with a problem when it comes to borrowing money. Sadly, you can’t have it both ways!
How much do I need to be earning?
Fortunately, some Mortgage Advisors will assess your income in a variety of ways. There are Mortgage Advisors in Doncaster such as, Mortgages Remortgages who will help you find someone, the right who will lend more than others. It’s our job to find the one most suited to our client’s circumstances.
For example, a lot of Mortgage Advisors will only look at the last two years of your earnings, whereas we have access to some who will only look at the latest year. This really benefits applicants whose earnings have recently risen.
For a Limited Company Director, the average of the last two years’ salaries plus dividends is generally what all most Mortgage Advisors need. There are some instances however, where this varies. Some Mortgage Advisors in Doncaster only see you as employed if you own a certain percentage of the company. This counts even towards Directors, so they may consider going off your payslips from the last 3 months.
Some business owners run organisations that are highly profitable but don’t need the income so take a low dividend. This type of applicant can be at a disadvantage by the salary and the dividend method, but there are Mortgage Advisors out there who will consider using the net profit of the Limited Company as a solution to the problem.
You can Always Contact your Mortgage Broker in Doncaster
You can always contact Mortgages Remortgages – Mortgage Broker with the projected figures if your business is due to complete a set of accounts. Our Mortgage Advisors in Doncaster can calculate what your maximum borrowing would be based on a draft of the figures, although the accounts would need to be finalised prior to a formal mortgage application. If you’re stuck and need a hand, give us a call on 01302 361 361 – or pop down for a friendly chat with one of our Mortgage Advisors, who will give you the BEST advice in Doncaster.
We have learnt that; it really is quite challenging calculating maximum borrowing capacity for a self-employed applicant – you could easily go to 10 different lenders and get 10 different answers! Using a friendly Mortgage Advisor like ourselves, Mortgages Remortgages – Mortgage Broker would probably be the best port of call If you need to maximise your borrowing capability. We would urge any Company Director to do so!
Are your Situations not listed above? Do you need some help from our Mortgage Advisors?