Mortgage advice for the hard working self-employed

People who work for themselves are regarded as the back bone of the economy. Whether you are self-employed as a sole trader, in a partnership, a director of a limited company or a contractor I am sure you put in longer hours and work much harder than the average person in the street and deserve to be treated with respect.

So why is there a common misconception that you are victimised and treated differently by mortgage lenders than those who are employed. Admittedly there are some differences, for example you would not get a mortgage on day one of self employment. But apart from this you are not treated any differently, it is just a matter of appoaching the right lender, proving adequate income and being credit worthy for the mortgage compny chosen.

Company Directors: Most company directors take a small salary and pay themselves dividends on accountant’s advice to minimise taxation. Most lenders will insist on only using this income, which probably does not truly reflect the earning potential of the applicant, especially if they are retaining profit in the company. We have lenders who will also use the applicant’s share of the company’s net profit and in most cases this will vastly increase the size of the mortgage available. Sometimes the company has not been trading long enough or the applicants company becomes incorporated on accountant’s advice. We also have answers and lenders who will help in these situations.

Self Employed and Partnerships:  Again there are massive differences here. Lenders will vary between requiring a minimum of three years trading to only one year’s trading. Some will average the last three years net profits, some the last two years and some will just use the most recent year’s net profit. At Westexe Mortgages we have the knowledge and answers to work out the best lenders to suit our client’s situation.

Contractors: Many lenders will not accept contract workers, but others will. The differences lie in how long have they been contracting and what term remains on the current contract. Some contractors even have complicated systems in place surrounding income received to minimise tax liabilities. It is our job to firstly understand the applicant’s sometimes unique situation and tailor the best solution for them.

We even have lenders who will accept the self-employed who may have a historic poor credit history.

We are pleased to be able to offer a FREE booklet on mortgages. For your copy please send us your name, phone number, postal address and email address via our Contact page or email us at

We are here to help in a totally independent capacity, no mortgage is too small, too large or too difficult for us to consider. Each of our advisers takes a personal interest and takes personal responsibility for there clients seeing each applicant through from start to finish. With over 36 years of combined experience, we consider ourselves as second to none, so please contact us 24/7 on 01392 216 344, drop us an email at or use our contact form to get in touch today

Posted on September 1, 2017 by Peter Marriott, in: Staff posts

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