Are you self-employed or a contractor and struggling to get a mortgage?
That’s no problem for us, at DJB Mortgages we can help you. Whether you are a sole trader, company director, CIS (Construction Industry Scheme) worker, IT contractor or any other type of self-employed worker, we can help and advise you on your mortgage.
We know it can be difficult to get a mortgage, and sometimes the banks do not always fully understand how you are paid. With our help, we can advise you on a mortgage you require that is tailor-made for your self-employed status.
Being a sole trader can difficult when it comes towards gaining your mortgage, many people have the perception that banks & building societies will look to take an average of your latest 2-years net profit. This isn't always the case, DJB Mortgages has the experience, knowledge and relationship with lenders that we can look to use your latest years net profit in some cases.
So if you have only submitted 1-years accounts as your in the first stages of your entrepreneur adventure, you may still be able to gain a mortgage, so please get in touch and speak to one of our advisors who will be able to give you the advice tailor-made to your circumstances.
Ltd company director
Being a Ltd company Director, you might feel like you are employed through your own company because you receive monthly payments through the PAYE scheme, but through the eyes of a mortgage lender, you are treated as self-employed when you own more than 20% of your limited company.
However, this can work in your favour, DJB Mortgages can look at your income in 2 different ways, and this makes sure that we are using as much income as possible. We have relationships with major mortgage lenders that will either use your salary plus dividend payments or if you decided to leave profit within the company we have lenders that will utilise the salary and company profits.
This is were the advice and knowledge of DJB Mortgages really comes in to play, as we will look at both scenarios and advise you on which one works best for your circumstances.
(CONSTRUCTION INDUSTRY SCHEME)
Did you that if you are a CIS subcontractor we can use your contractual rate, rather than your self-employed profits?
This is great news for those CIS workers with low profits, and also that may not have 2-years track history with the self-employed sector. One of the main points though is we need to see a track record of 1-years CIS statements.
DJB Mortgages can make sure that we explain the full process to you and make sure that we use a lender that will look at you as employed rather than self-employed, but also make sure that we structure the income in the best possible way, as some lenders will take an average of the last 3-months and others the last 12.
Being a contractor can sometimes be a minefield when to coming to gain your mortgage. You may walk into the bank or building society and they will use your tax returns, and these may not show much profit or salary and dividends being drawn from the company.
We understand that you structure your income for tax purpose, and this is where our experience at DJB Mortgages comes into play again.
We can look to use your day rate rather than the tax reruns of the Ltd Company, with many lenders looking at this structure we can ensure that we find the lender that matches your circumstances around income and borrowing potential.