Maximum mortgage solutions for Self Employed clients
If you are self employed operating as a Limited company we have a number of lenders that will use the underlying net profit rather than drawn dividends. So if you are keeping money in the business you will be able to borrow more. With almost 82% of new business going via brokers its always worth talking to an independent broker that deals with self employed applicants to find you the very best solution.
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Example from a lender working from salary and dividends
[ezcol_2third]Average dividends over past 2 years[/ezcol_2third] [ezcol_1third_end]£30,000[/ezcol_1third_end]
[ezcol_2third]Average salary over past 2 years [/ezcol_2third] [ezcol_1third_end]£10,000[/ezcol_1third_end]
[ezcol_2third]Total income to be assessed [/ezcol_2third] [ezcol_1third_end] £40,000[/ezcol_1third_end]
Typical income multiple x 4.5
[ezcol_2third]Max loan with lender on salary/dividends [/ezcol_2third] [ezcol_1third_end]£180,000[/ezcol_1third_end]
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Same example using Underlying net profit
[ezcol_2third]Average Profit Before Tax over 2 years [/ezcol_2third] [ezcol_1third_end]£45,000[/ezcol_1third_end]
[ezcol_2third]Average Salary over 2 years [/ezcol_2third] [ezcol_1third_end]£10,000[/ezcol_1third_end]
[ezcol_2third]Total income to be assessed [/ezcol_2third] [ezcol_1third_end]£55,000[/ezcol_1third_end]
Income multiples x 4.5
[ezcol_2third]Max loan with Niche Advice [/ezcol_2third] [ezcol_1third_end]£247,500[/ezcol_1third_end]
To find about getting the maximum mortgage when your self employed, speak to the experts at Niche Advice T: 020 7993 2044 or complete the contact form on this website.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines. To get in contact with him please click here.
