By Ed Emerson
Trying to secure a UK self-employed mortgage when you’re a freelancer, contractor, company founder and / or new business owner can throw up a lot of challenges.
And those mainly come about because the banking industry is primarily set up to:
- Process mainstream PAYE-based applications from those who are deemed “traditional employees”, and
- Fail to grasp how self-employed people pay themselves, and why they do so with lower tax options in mind.
As such, if you don’t adjust to the lending environment your chances of success are slim…..and get slimmer with each subsequent application you make without seeing things from the banking community’s perspective.
For instance, following the creation of our report “The 5 Steps to a Self-Employed Mortgage”, which will be available to all HNW readers soon, we only found five or six lenders in the UK that truly understand and accommodate mortgage applications from the self-employed community – a cohort that is now over 5 million strong, and has been recently been recognised by the political machine as a strong voter community.
Things are moving forward. But what that means is that the remainder of the banking institutions in the UK will not be able to work with you for a mortgage. They simply don’t have the type of administrative, compliance and salary recognition nous to do so. And while you’ll see many grumbling their way towards doing something about it, we can tell you there are for more banks on the outside looking in than otherwise.
Your first objective, after checking your credit to ensure that’s it’s either:
- Not a problem with all three credit reference agencies – we know a service that can do that without applying for each and save you money in the process, or
- You identify something that might impede your application on one or several of these credit reference agency reports, and set about fixing it before you apply.
Your next goal is to identify those lenders who can and will work with you and scratch the rest off the list.
We can help you do that.
Want to know more?
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 a UK Self-Employed Mortgage out soon, and take advantage of the mistakes others have made so that you don’t have to.
Ed Emerson, Editor, HNW Magazine