complex MORTGAGES
SELF EMPLOYED
While mortgage lenders do not offer different mortgages for the self-employed, how you prove your income will differ from that of employed people. Most lenders will look at most recent 3 years trading history but if you haven’t been trading this long there are still lenders who may consider you. Have you stayed in the same industry just changed how you are paid for example?
Depending on how your business is set up lender will look to verify your income in different ways:
You’ll also need to produce three years worth of limited company accounts. Some lenders will take both your salary and net profit into account, if this is more beneficial. However, you should consider that not all lenders will do this so it is important you consider this when drawing income from your business. Your Mortgage Adviser can give you guidance on this.
When you’re Self-Employed, applying for a mortgage by yourself can be a time-consuming and tricky. We specialise in mortgages for Self-Employed people and know exactly what paperwork you’ll need to have prepared in advance making sure your application is processed smoothly and giving you the best change of acceptance.
CONTRACTORS
There are no specific mortgage products for contractors, working as a contractor you can access the same mortgage products on the market that everyone else can. There are however lenders who understand your position as a contractor better and are worth approaching through the help of a mortgage broker.
Whether you work under a PAYE payroll as a contractor or you are self-employed, CIS Construction scheme or IT specialist you will need to prove your income to lenders and need to make sure you have at least a year’s worth of paperwork to support the application.
Having dealt with many different contractor types we are best placed to ensure a smooth process and manage the application on your behalf.
FOREIGN INCOME MORTGAGES
If you work for a company that pays your salary in a currency other than pounds, perhaps because you work offshore, then you may need a foreign income mortgage. These are available although it’s not a simple process. There are some lenders who will consider mortgages based on foreign income, it’s by no means the majority, and criteria vary significantly between lenders depending on your circumstances and the currency.
In 2016 new obligations were set out for lenders that require them to monitor exchange rates for borrowers lent to based on foreign currency and warn them if rates exceed set limits. Because of this extra layer of administration and cost, some lenders chose to stop offering foreign currency mortgages, reducing the pool even further.
We are specialist in securing these types of finance. Be expected to provide contracts, 12 months of income proofs and bank statements to show the earnings are consistent. Some lenders also want to see your travel back and forth to the UK is regular. Its prudent to have a broker review your specific contract and income to ensure the best chance of acceptance.
Changes in the exchange rate may increase the sterling equivalent of your debt.
ADVERSE CREDIT
At SMD Financial Services, we understand that bad credit can come from various sources, such as late payments, defaults, CCJs, and debt arrangements. Often, people don’t realise they have bad credit until they apply for a new credit account.
To determine your credit status, it’s crucial to check your credit report. Many people use ClearScore or Experian, which you can access online. However, the most comprehensive credit report comes from CheckMyFile, which combines data from all three major credit agencies: Experian, TransUnion, and Equifax. This is particularly important for mortgage applications, as different lenders reference different credit agencies.
We have an affiliate relationship with CheckMyFile, offering you a 30-day free trial. CheckMyFile provides a complete view of your credit data from all three agencies and is highly rated on Trustpilot. You can cancel the trial or subscription at any time. Beyond the 30-day free trial, the service costs £14.99 per month.
Feel free to use this link to sign up: https://www.checkmyfile.partners/7S3FC9L/2CTPL/
We specialise in this area and can help guide you through your options, which may include needing a slightly larger deposit compared to those without credit issues.
LET TO BUY
A Let to Buy mortgage will allow you to buy a new home and let your current property out to tenants. At the end of the process you will own two properties – and have two mortgages.
One mortgage is a standard residential mortgage, taken out on the new home, and you will also need a Buy to Let mortgage on the house you will be renting out.
Let to Buy is a good way to release the equity from your existing property and use it as a deposit on the new house. It also means you get to retain your first property as an investment instead of selling it.
To use your equity as a deposit you usually need to take both mortgages with the same lender.
We can help with setting up both mortgages, saving you the time and hassle of sourcing both yourself.
OFFICE HOURS
Monday to Friday - 9:00 am to 5:00 pm
Saturday - 09:00 am to 11:30 am
Contact Info
Office 1 - Technology House
9 Newton Place
Glasgow
G3 7PR
Tel: 07545 087074
SMD Financial Services Ltd has no control or responsibility for the pages you are about to access, or where any subsequent links may take you.
Your Home (or Property) may be repossessed if you do not keep up repayments on your mortgage.
smd Financial Services is a trading style of SMD Financial Services Ltd which is an Appointed Representative of HL Partnership Limited,
which is authorised and regulated by the Financial Conduct Authority.
Registered Office: SMD Financial Services Ltd, Office 1, Technology House, 9 Newton Place, Glasgow, G3 7PR. Registered Company Number: SC760431 Registered in Scotland.
The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK
There may be a fee for mortgage advice. The precise amount will depend on your circumstances and will be agreed upon with you before proceeding. Our typical fee is £399 or £699 for those with poor credit history.
PRIVACY NOTICE