Mortgages for the self-employed
Getting a mortgage as a self-employed person has long been considered a challenge. Thanks to unpredictable payment terms and income fluctuations, some lenders can be reluctant to provide self-employed people with the mortgages they need.
Thankfully, being self-employed doesn’t mean you’re destined to a lifetime of renting. Providing you have a healthy deposit, a secure credit rating and evidence you can handle monthly mortgage repayments, home ownership is still within your reach.
Whether you’re a first time buyer or a recently self-employed home owner looking to move into a bigger place, TaylorMade Finance can help you obtain a mortgage for the home of your dreams.
need to know…
How is self employed defined?
If you work for yourself rather than for an employer paying a salary or wage, you’re considered to be self-employed. You’re also self-employed if you hold a stake of 25% or more in a company.
The following may also be treated as self-employed:
- Sub-contractor with income from more than one contract
- Partner in a business
- A franchise owner
- Anyone employed by a limited company of limited liability partnership whose rewards package includes dividends and/or profit share
The following may also be treated as self-employed:
Sub-contractor with income from more than one contract.
Partner in a business.
A franchise owner.
Anyone employed by a limited company or limited liability partnership whose rewards package includes dividends and/or profit share.
If, as a sole trader, you are considering setting up a company, be careful. Lenders will tend to ignore your record as a trader and start from scratch on examining your company records, probably requiring at least two years’ accounts.
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The benefit of using a broker is that they can do the shopping around for you. We already know which lenders are most likely to provide self-employed people with the mortgages they need. As a result, we can save you time, energy and money during your mortgage search.
Our online mortgage calculators have been designed to help you with the most common mortgage questions such as ‘how much can I borrow?’ and ‘how much will it cost?’
To get a more accurate idea we recommend that you speak to one of our expert mortgage advisers.
A fixed rate mortgage charges a set rate of interest for a predetermined period. Once this period is over, the interest rate usually revers to the lender’s Standard Variable Rate (SVR).
Trackers are a type of variable rate mortgage which see interest rates rising and falling based on the Bank of England’s base rate. However, unlike traditional variable rate mortgages, a tracker mortgage doesn’t have to match the Bank of England’s rate exactly. Instead, the rate the borrower is charged is likely to be a little above the base rate.
An offset mortgage links the borrower’s savings to their mortgage balance. By choosing an offset mortgage, homeowners can reduce the amount of interest charged and potentially pay off the mortgage sooner.
A cashback mortgage pays the borrower an upfront lump sum. This can enable them to pay for a costly expense such as home furnishings, a car or university tuition fees. The rate paid tends to be based on the bank's Standard Variable Rate (SVR).
A discount rate mortgage offers borrowers a reduction on the lender’s Standard Variable Rate (SVR) for a set period of time. The rate can fluctuate and so although the borrower will repay less than the SVR, their repayments could rise or fall.
A variable rate mortgage sees the interest owed rise or fall depending on the base rates set by the bank. When the base rate is low, borrowers may benefit from extremely low mortgage repayments. However, if the base rate increases, so too will the amount borrowers are expected to pay in interest.
When a homeowner has an interest only mortgage, they won’t pay traditional mortgage payments each month. Instead, they’ll only repay the interest that is due. At the end of the mortgage term, the homeowner will be expected to pay the property’s value in full.
A capped rate mortgage offers similar security to a fixed rate mortgage. The rate payable will be capped for the duration of an agreed upon period of time. During this time, the rate may rise or fall in line with market fluctuations, but it will never exceed the capped rate.
As a result, a capped rate mortgage enables borrowers to benefit from falling rates without placing strain on their budget as a result of unaffordable increases.
We conduct a thorough and obligation free financial review to ensure our services are appropriate for you.
We provide a face to face meeting, to take you through the best options for you, in the comfort of your own home.
We aim to support the Financial Conduct Authority initiative of ‘Treating Customers Fairly’ at all times.
We provide you with all the information that you need to make a decisive and informed decision.
With access to a comprehensive range of first charge mortgages and protection, we can deliver a complete range of flexible mortgage solutions to fit your exact requirements.
We provide our clients with an ongoing service by conducting an annual review to ensure that their current mortgage arrangements still suit their needs.
Our comprehensive service includes an initial no obligation consultation, professional advice and recommendation, help with legal paperwork and an annual review for every customer.
All of our advisers are helpful, courteous and ready to listen at all times.
Talk to us
If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.
Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk
Your mortgage will be secured against your property.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgages we can be paid by commission, or a fee of usually 1% of the loan amount.
TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.
The Financial Conduct Authority does not regulate Will Writing and some aspects of estate planning. Buy-to-Let Mortgages and Secured Loans.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.