Are you stuck in a mortgage RUT?


As a business owner or company director obtaining a mortgage can be difficult

Mortgages for the self-employment and directors can be really difficult to obtain. Banks, building societies and comparison websites that “process” mortgage applications typically reject applications from the self-employed or company directors (with a low basic wage “topped up” by dividends or company loans) because they tend not to be “straight forward”, in fact they are often referred to as “complex lending cases”.

So what happens? 

Typically the person looking to re-mortgage or buy their first property, will either continue with their current mortgage provider, even though the “honeymoon period” of low interest rates has expired and as a result, actually start paying higher monthly charges.

Alternatively, if you’re a first time buyer, you may just hit too many “brick walls” and decide that it’s easier just to continue renting a property.

But you need not be stuck in this MORTGAGE RUT, banks and mortgage providers ARE WILLING TO LEND – in fact, they typically like lending against residential mortgages, as houses are pretty secure, but there are some key points to help ensure that your next re-mortgage or first mortgage application goes “like clockwork”.

Your Business or Company Accounts

Business and company accounts do not always look fantastic – sometimes profits will be lower than expected, or perhaps high one year, but lower the next, either way, it is really important that you have your accounts prepared correctly and “signed off” by a chartered accountant to help ensure that they are fully correct and presented in professional format.

Over the years we’ve come across a huge number of business owners looking to obtain a mortgage and their accounts simply don’t add up or make sense, on this basis the mortgage company will often get to the answer of “no, thanks” very quickly.

Use an advisor who understands the mortgage market

The phrase “horses for courses” is really appropriate here, every single mortgage application from a business owner or company director will be different – it will have different levels of income, different backgrounds and different personal circumstances. When looking for a mortgage try and target a bank or building society that suits your circumstances, and this may not always be the “usual suspects” of Barclays or Lloyds for example, it may be that your application is better suited to a smaller, less well known bank or funder.

Don’t waste time

Meet with a suitable professional who will advise you very quickly as to whether you are likely to be successful in obtaining a mortgage, if not, then it’s much better that you are told swiftly before you start wasting time and incurring professional fees.

Why business owners and company directors come to FD Analytical

At FD Analytical, we are an award winning firm of Chartered Management Accountants who are based in Merseyside.

We help support company directors and business owners in obtaining mortgages by; preparing amazing, accurate and timely accounts for your business AND fully authorise them as fully qualified accountants.

If required we will prepare future projections and forecasts for your business and introduce you to some of the most skilled mortgage advisors in the UK to help ensure that your application is a SUCCESS.

…….And if your application ISN’T A SUCCESS – we’ll help guide you through the process of how to make future applications successful.

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