Self Employed? Need Financial Advice?

Finding the right mortgage and financial advice when you are self-employed can be a nightmare. Knowing what information you need to provide seems to vary from lender to lender and the criteria seems to change too. That’s why using a financial advisor, such as Endurance Financial is such a good move. They can guide you through the mortgage minefield, and make sure that you have everything in order to make your mortgage application as straightforward as possible. Below are just some of the things they can help you with.

REMORTGAGE – HOME IMPROVEMENTS

Some lenders ask for proof of works being carried out on your property for raising additional funds, this means that they would ask for quotes, planning permission etc. As tradesmen you may be carrying out the majority or some of the works yourself.

We have a list of lenders available that don’t ask for proof of works, quotes or planning permission when borrowing extra money to fund new Kitchens, Bathrooms, Extensions, Man Caves etc.

CONSTRUCTION INDUSTRY SCHEME (CIS)

The majority of lenders view CIS workers as self-employed and use your net profits for their calculations, this could be limiting your affordability for a mortgage.

• Do you receive a tax refund at the end of the tax year?
• Are you taxed at source and receive CIS vouchers / Payslip?

If the answers are yes, then you are more than likely part of the CIS scheme and using these vouchers for affordability may considerably improve affordability for mortgage purposes.

LIMITED COMPANIES

Trading as a Limited Company?

Most lenders will assess your Salary and Dividends and do not take your profits within the business into account.

Did your business make more profit than you took out?

If your business did, are you aware that we have lenders available who will use the income you didn’t take out the company and can use this for affordability?

SELF EMPLOYED LESS THAN 2 YEARS?

If you’ve been self-employed for 2 years or less getting a mortgage might seem out of your reach.

But it isn’t impossible. There are options available although it is very much looked at on a case-by-case basis.

In some circumstances, if you are a CIS worker we may be able to get you a mortgage with as little as 3 months CIS vouchers.

SEISS GRANTS AND BOUNCE BACK LOANS

• Did you take the Government SEISS grants during COVID or access the Bounce Back Loan?
• You may have already been refused a mortgage and told that the grants were the reason for this?

Lenders do appear to be relaxing their stance on the grants taken and each lender is taking different approaches when assessing affordability. We have had huge success rates for self-employed who have taken the grants!

INCOME PROTECTION

If you’re self-employed you are more than likely aware that having Income protection is a really good thing as many people couldn’t get by on Statutory Sick pay alone.

Income protection is a regular, tax-free income if you’re unable to work because of accident or illness.

There are many different options with this type of protection which require it to be set up to suit each individual/family on a case by case basis. Out of all the advised sales, Income Protection is the most complex due to the amount of options available.

Another thing to look out for is if your income fluctuates year on year then the benefit amount may also fluctuate. You may be paying for a policy that won’t wouldn’t pay the full benefit when you initially set it up.

BAD CREDIT?

Have you had bad credit in the past? Been refused a mortgage because of it?

• Bankruptcy
• IVA’s
• CCJ’s
• Defaults or missed payments
• Pay day loans

Just because you have had adverse credit previously doesn’t automatically mean that you can’t get a mortgage. In some circumstances can actually place you with a high street lender!!!

We would need to assess your current situation and obtain your credit file but you may have options to get a mortgage.

HOW MUCH CAN I AFFORD ON A MORTGAGE?

Thinking of moving home and wondering how much you can borrow or afford?

This is one of the most common questions asked and we can quickly assess this over the phone and look at your circumstances. Alternatively, if you are not ready to talk to an advisor, you can use this TOOL complete the form to get a rough idea of affordability without affecting your credit score.

FIRST TIME BUYERS & GIFTED DEPOSITS

Are you a First Time Buyers or have kids who are First Time Buyers and aren’t sure of the requirements around gifted deposit?

• Are gifted deposits ok?
• Can I gift my kids a deposit?
• Can I loan my child a deposit?

In short, the answer is yes. Lenders do approach this differently and may ask for evidence of funds, or a letter from the gifter. But in most circumstances is completely acceptable. I would suggest not to move any funds unless told to do so, as this can cause problems.