Are you eligible?
You may have discovered difficulty in placing your mortgage if your income is not in the standard format. Due to our wealth of experience and having access to the whole of the market we have assisted many clients with the following situations:
Self Employed with limited accounts
It’s important to remember that every lender is different. They all have a varied opinion on a massive range of criteria, which can make finding the right mortgage very complex. When it comes to self employed applicants, certain lenders request 3 or more full years of accounts to prove income, where some lenders are able to offer a mortgage with just one years set of accounts.
Some lenders consider businesses that have had a decline in profits in recent years, some decline it if takings were as small as £1 less! This criteria changes all the time, as every lender alters their stance on what is and is not acceptable – for this reason it would be inappropriate to list lenders as it could very soon be outdated. So, if you’re self employed and looking to get a mortgage, the best advice would be to make an appointment so we can find where the best deals are to be had, and which lenders would consider an application before you even start.
If you are paid weekly or monthly on a contract basis we now have options available. Finding out how much you can borrow as a contractor seeking a mortgage can be tough as every lender will use a different method and accept different types of income. If you’re on an employed contract it’s usually just your gross basic salary + any additional proven bonus or overtime. For self-employed contractors many of the specialist lenders will calculate your annual income by multiplying your contract day rate by the number of days worked each week x 48 weeks.
Generally speaking you can multiply this total by 4 (a typical lending rate) to get a rough idea of your borrowing limit. A contractor on £300 a day could potentially raise £288,000. Naturally the lender will take into consideration a number of other factors credit score and regular outgoings on other financial commitments are a good example of this) and then run the figures through their own affordability calculator to give you an exact figure.
Zero hours contacts
Stuck on a zero hours contract…speak to us to discuss your available options. Zero hours contracts are not uncommon nowadays, as employers are reluctant to commit to a fixed contract or a minimum number of hours every week, especially in industries where work can ebb and flow. As a result, there is less certainty that an employee on such a contract would consistently earn the income to make repayments month to month, so most lenders decline applications.
Fortunately, this leaves a gap in the market for specialist lenders that are flexible and more understanding – a zero hours contract doesn’t mean the employee earns zero all year, and as such should be eligible to borrow something. With a track record of 12 months income, it is possible for certain lenders to consider an application, providing that the income is sustainable and work is likely to continue to come in. For professionals on zero hours contracts the length of working history required may be less.
We have access to lenders that will accept child tax credits, Child benefit, Disability Living Allowance, Income Support, Carers Allowance, Universal Credit and maintenance.
Clients working abroad
We live in a truly global society, so we’ve got relationships with lenders that regularly lend to British people based abroad.
For people returning to the UK from abroad it has become very difficult for them to obtain mortgage finance, with most lenders these days using electronic credit scoring, which requires two or three years UK address history. Borrowing for this group of people has almost come to a halt, but thankfully there are some options available by taking our specialist advice.
Challenge us with your unusual criteria and let’s see what we can do for you.
93 Byres Rd, Glasgow, G11 5HW
Our Phone Number
0141 337 3393