By Philip H Yates, Consultant: Mortgages & Equity Release

With the vaccine rollout numbers increasing daily it is encouraging for all of us that we are making steps to return to a more normal life.

I have a number of clients who work for themselves as sole traders, partners or shareholders in limited companies and lenders have different ways of assessing how much they can lend to self-employed borrowers. It’s important to establish incomes at the outset to enable us to find the best mortgage scheme. 

Dual Incomes
Recently, I advised a client whose income came from two sources: firstly, as a sole trader and secondly as a major shareholder in a limited company. Once his income total was established, I was able to find a lender and product to cover his requirements, the mortgage offer was issued, and the new purchase was completed.

Self-Employed at 70
Similarly, I was recently able to arrange finance for a self-employed client in his 70s. This client is a major shareholder playing an active part in his limited company and was planning to purchase a new property as his primary residence. However, given his age arranging a long-term residential mortgage was not an option. In addition, his limited company income plus his modest pension income was not sufficient to cover the mortgage he required. He did though own a second property as a rental investment – I was able to obtain a mortgage against this property which enabled him to raise the funds required to purchase his new home.

Keeping things simple
We try to make the whole mortgage application process as easy and as straightforward as possible to obtain that all important mortgage offer so that the legal work can continue its progress towards completion.

If you would like a free initial consultation to discuss your mortgage options, please get in touch with our Independent Financial Services team on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This article is provided for information only and must not be considered as legal or financial advice. We always recommend that you seek independent advice before making any financial decisions.