Self-employed and looking for a mortgage? Funding is out there if you use the right team

Self-employed and looking for a mortgage? Funding is out there if you use the right team
Monday November 30, 2020

In these strange and uncertain times, lenders are unsurprisingly exercising a modicum of caution and certain areas of the market have been hit harder than others. According to research from Aldermore Bank, being self-employed is now the most common reason for a mortgage application to be rejected[1]. Considering that, back in March 2020, it was the ninth most common reason, this shows how profoundly this sector of the market has been impacted.

If you’re self-employed, there’s no denying the lending landscape has become tougher, but there are still plenty of options available. We have a vast number of clients who work for themselves, from property developers and contractors to Solicitors and GPs, and because we have decades of experience in this area of the market, we have built up relationships with a range of lenders who understand the challenges faced by the self-employed, and are willing to take a view on our clients and their circumstances.

Case profile

Our young, self-employed client had seen a significant increase in income over the past 12 months. When deciding on maximum loan size, a lender would usually average out self-employed income for the preceding two years; however, doing so wouldn’t have offered our client the loan size he required.

Our Associate Director, Nigel Bedford needed to use his knowledge and contacts to find a lender which would base the maximum loan amount on the company’s latest year profits, backed by future projections for the business. The lender also needed to be comfortable with the fact that our entrepreneur’s deposit was largely gifted from their parents, a factor which has been an issue for some lenders since the global pandemic.[2]

Solution

Nigel found a lender who was happy to base affordability on the last 12 months’ performance of the company, even at the height of lender caution surrounding COVID-19. The lender was also happy with the gifted deposit and granted our client’s £800,000 loan at an exceptionally low, fixed interest rate, resulting in an excellent deal and an incredibly happy client!

If you’re self-employed or your circumstances are slightly outside of the norm, we have a team of specialist advisers who can help. We don’t do ‘off the shelf’ or ‘one size fits all’ lending, and that’s proven time and time again through our case history. Get in touch to find out if we can help.

[1] https://www.moneyexpert.com/news/self-employment-most-common-reason-for-mortgage-rejection/

[2] https://www.metro.news/home-loans-cap-at-bank-of-mum-dad/2098880/

Return to Our Case Studies

Our insights


We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.

Reviews


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home.  

largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: www.fca.org.uk. The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Largemortgageloans.com Ltd is a licensed credit broker, and not a lender.

Largemortgageloans.com Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.

largemortgageloans.com
Make An Enquiry

London Office (Main):

020-7519-4900

London Office (Main):

info@largemortgageloans.com

Largemortgageloans is a trading name of Largemortgageloans.com Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London