The number of self-employed is on the increase. Nearly 4.8 million people are self-employed in the UK and the numbers are growing.
In the past self-employment was often a choice of last resort, but today it’s a choice of preference for many thousands of budding entrepreneurs.
Which is great news – until it comes to getting a mortgage.
Making the decision to switch from salaried to self-employment can make getting a mortgage a nightmare, even though your client may be working in the same industry they have worked in for many years.
And if they intend to work on a contract basis then life can be even tougher, because many lenders struggle to understand how to accommodate day and hourly rates.
A solution for the self-employed
Magellan understands the needs of the self-employed:
- Only 12 months trading required
- We’ll accept the latest year’s share of net profit + remuneration for limited company directors
- We accept the latest year’s SA302s for sole traders and partnerships
- Discretionary spend can be added back into the affordability calculation (e.g. pension contributions, health insurance premiums, share save).
- Contractors accepted (we require at least 3 months remaining on existing contract)
- We’ll lend up to 85% LTV & have rates from 2.99%
- We will lend beyond state retirement age
- We will lend to borrowers who have been rejected on credit score and who have adverse credit records
Each case individually assessed
We don’t credit score and all applications are individually assessed by an experienced underwriter, who will make a decision about your clients’ application based on its own merits.
Find your local Regional Sales Manager here – for new or existing business, make our network of experienced managers your first contact point.
Alternatively, you can speak to one of our friendly and knowledgeable team at the mortgage desk about any of our mortgage products and services
on: 0207 197 9424.
