Borrow more with this 1 Year Fix Self Employed Mortgage aimed at mortgages over £500,000
Bumper year or just 1 year’s trading – borrow more with this 1 Year Fix Self Employed Mortgage aimed at mortgages over £500,000 … it could be the ideal stepping stone for you!
So if you have a need to move or can’t wait for your dream home this 1 Year Fix Self Employed Mortgage could be the one to use.
1 Year Fix Self Employed Mortgage only has main early repayment charges inside the period. So once your Company has a two year track record you can remortgage to a “high street” rate without being penalised.
Highlights
- Assessed on the latest year’s figures.
- Can use income retained in the business rather than drawn provided the Applicants are the sole directors.
- 1 year’s trading.
- 1 year fixed rate with main early repayment charges inside the period.
- Flexible criteria for Contractors – 48 week calculation.
- Suitable for Sole traders who have incorporated into a limited company.
- Multiple income streams considered.
- Minimum mortgage £500,000.
- Minimum deposit 15% to £2,500,000 mortgage.
- Minimum deposit 20% to £2,000,000 mortgage.
- “Interest only” mortgages up to 75% loan-to-value provided there are established savings/investments in place.
- Credit problems three years ago considered including CCJs and defaults.
- Lender is part of the Barclays group.
Affordability – 1 Year Fix Self Employed Mortgage
| Latest Years Self Employed Combined Joint income | Maximum Mortgage over 25 years | Maximum Mortgage over 35 years |
|---|---|---|
| £150,000 | £555,532 | £581,958 |
| £175,000 | £675,896 | £708,046 |
| £200,000 | £796,259 | £834,135 |
| £250,000 | £921,376 | £965,204 |
| £300,000 | £1,095,566 | £1,147,680 |
Key / assumptions:
* Husband and Wife.
* Income split 50/50% between them.
* Income could include retained income within the business.
* Buying in London.
* Two dependent children. Aged 5 and 7 years.
* 25% deposit.
* Calculations taken 13/5/23 and are subject to commitments, credit score and full underwriting.
* Source Kensington’s intermediary website.
Mortgage Rates – 1 Year Fix Self Employed Mortgage
| Date analysed 13/5/2023 | 75% loan-to-value | 80% loan-to-value | 85% loan-to-value |
|---|---|---|---|
| Initial rate | 6.14% | 6.54% | 7.04% |
| Subsequent reversionary rate | 7.85% | 7.85% | 7.85% |
| The total amount you must pay back, including the amount borrowed is | £1,701,201.16 | £1,818,708.00 | £1,937,785.40 |
| Overall cost of comparison APRC | 8.00% | 8.00% | 8.10% |
| Type and initial benefit period | Fixed rate for 12 months | Fixed rate for 12 months | Fixed rate for 12 months |
| Minimum deposit | 25% | 20% | 15% |
| Valuation fee | £710 | £710 | £710 |
| Booking fee | £Nil | £Nil | £Nil |
| Lender product fee | £1,875 | £2,000 | £2,125 |
| Cashback | £Nil | £Nil | £Nil |
| Lender name | Kensington Mortgage Company | Kensington Mortgage Company | Kensington Mortgage Company |
| Main early repayment charge | 3% of the amount repaid in the first year | 3% of the amount repaid in the first year | 3% of the amount repaid in the first year |
| Admin fee on full repayment | £90 | £90 | £90 |
Notes
* The comparison is based on an assumed purchase price of £1,000,000 over a 25 year mortgage term.
* It looks at repayment method is “capital & interest”.
* Product fee paid rather than added to the mortgage.
* Full eligibility will depend on your own personal circumstances and should be discussed with a professional Mortgage Adviser.
* Source Twenty7tec.
So if you’re looking to borrow more with the 1 Year Fix Self Employed Mortgage, please call us on T: 020 7993 2044 or complete the online enquiry form on this page.
