By Ed Emerson
As we approach the launch of HNW Magazine’s forthcoming report on how to get a mortgage when you’re self-employed or a freelancer, contractor or start-up business owner, we look at news and updates on the best banks for these special self-employed mortgages in the UK.
Saffron Building Society
If you’ve ever wondered “Can I get a mortgage when I’m self-employed?” we’ve learned that Saffron takes a far more inclusive approach to this mortgage market and welcomes contractors from all niches and pay grades, not just IT contractors as is common amongst some banks and building societies.
Saffron Building Society has also recently announced that it’s scrapping it’s ceiling lending age limit of 75, making its offerings more inclusive by judging each application on a case-by-case basis.
While strict affordability criteria obviously still applies, Saffron is saying that mortgage applicants should be able to borrow regardless of age, as long as their income – be that pension, investments, etc. – can reasonably be expected not to change.
For the self-employed, Saffron will also consider mortgages with 2 years accounts and even those with only 1 year of accounts available to justify earnings.
Amongst the other lenders in the UK who HNW identified as offering the best mortgages options for the self-employed in 2016 – and even the recently self-employed – is Virgin Money. The bank will even consider applicants operating on 12-month and 6-month contracts.
Richard Branson’s Virgin Money has also announced that it has increased its year-on-year gross mortgage lending business during the first half of 2016 to £4.3 billion – a rise of 19% – with mortgage balances increasing by 9% to £27.7 billion.
The self-employed employed mortgage criteria for 2016 for Virgin Money is measured upon your current contract. As such, if you’re operating under an umbrella company and looking for a self-employed mortgage, Virgin Money might be a viable option.
Affordability is key, as is calculating and being realistic about what you can and can’t afford. HNW Magazine has a tool to help you with this – a self-employed mortgage calculator , which gives you a breakdown of monthly payment along with the total repayable based on the interest rate you choose.
Remember to come back for regular news and updates on the best banks and building societies for self-employed mortgages, like Aldermore, Kensington, Clydesdale and Halifax, here at HNW Magazine.
Want to know more?
Now why not see what HNW Magazine’s Self-Employed Mortgages section here has to offer you in terms of advice, guidance and options.
And look out for HNW Magazine’s report The 5 Steps to Getting a Mortgage When You’re Self-Employed for consultants, freelancers and entrepreneurs, out soon, and take advantage of the mistakes others have made so that you don’t have to.
Ed Emerson, Editor, HNW Magazine