Self Employed Mortgage Broker

How We Work

1. Get a Customised Quote

Our mortgage specialists will take a detailed look at your situation and what you're looking to achieve, and provide a sense-check on whether it’s achievable, what the best terms and rates look like across the market, and how we can help.

2. Secure A Decision in Principle

Within 24-48 hours depending on your urgency, we can have your Decision in Principle secured from the lender. You can present this to estate agents and sellers to showcase your buying power.

3. Submit Your Application

When you’ve had your offer accepted, we’ll submit your mortgage application, and the valuation process and legal work can begin. We'll act as a mediator between all parties, making sure the deal is progressing as efficiently as possible and smoothing out any complexities along the way.

4. Complete Your Purchase

We will keep you updated and informed until you receive funds from the lender and your purchase is complete. And for any queries you have throughout the course of your mortgage, we’re always here to help.

Contents

Defining Your Income

Right from the outset, self-employed people have an issue on paper. What exactly is your income?

Unless you’ve been running your business for a long time, it’s unlikely you can reasonably answer that question. Even if you can, are you sure it’s going to be the same next year? If all goes well, you’re planning for it to go up each year, which of course makes you a safer prospect for the lender, but even that has its problems - after all, if it does go up, are you doing the right thing getting a mortgage today or should you wait for the higher buying power of tomorrow?

Consider a standard loan-to-income (LTI) multiplier of four times your salary. For someone earning PAYE of, say, £50,000 p.a., the mortgage on offer is clearly £200,000. However, income for self-employed entrepreneurs often comes from multiple streams as part of this tax balancing - perhaps you have a certain amount as a salary, but award yourself a dividend bonus at the end of the year, for example. You need a mortgage lender who understands this nuance and is willing to accept a bonus alongside a salary for a more complete income calculation that leads to a more reasonable LTI.

There are other complications, too. Self-employed individuals may:

Be in a period of strong growth and want a mortgage that represents their improved business rather than one that relies on out-of-date figures from a year ago or more.
Have income from non-standard streams, such as shares and investments.
Have fluctuating income that is seasonal and more difficult to clearly predict.

Defining your income in such a way that it is clear to the mortgage lender requires specialist understanding and the experience to present your finances in the right way. Using a mortgage broker with established relationships with specialist lenders, as well as the expertise you need to be seen in the right light will make all the difference.

Clifton Private Finance have the know-how you need for a successful mortgage that properly represents your earning power.

Bad Credit and Credit History

High-street banks and traditional lenders lean on your credit score as a significant metric to make a risk assessment. For some lenders, the slightest blip in the last 12 months of a credit history can be enough of a red flag for them to deny a mortgage altogether.

Specialist lenders are more flexible and are willing to have a deeper conversation about your credit history and any periods of poor debt management to gain a proper understanding of the situation and what has happened since then to improve it.

When you work with Clifton Private Finance as your mortgage partner, you immediately get access to a personal advisor who will listen to your unique circumstances and help you put forward your situation to mortgage decision makers who have the authority needed to look past inflexible rules. With our help, you can secure a mortgage - even if you’ve gone through a time of poor credit and are working to develop your credit history from those old difficulties.

Working with Forecasts

Business is always moving, and if it’s going well, this means numbers are on the up. It can be extremely frustrating to know that you can afford a larger property with a more sizeable mortgage going forward, to be blocked because last year’s tax return shows that you earned half of the amount you are bringing in today.

While traditional banks are often inflexible when it comes to taking your improving figures into account, specialist lenders working with mortgage brokers allow greater scope for analysing ongoing trends in your business growth. This can make it easier to purchase larger-value homes based on your booming income rather than out-of-date accounts.

Paperwork Requirements

Good preparation helps a lot when looking at getting a self-employed mortgage and that means getting your paperwork in order. At Clifton Private Finance, we help you get everything ready in advance of your application so that the process is as smooth as possible. You will need:

SA302 form – This is the proof of income from HMRC that can be obtained via the official website or from your accountant.
Business accounts - Certified accounts are important. While traditional lenders and high-street banks will need two to three years of accounts, specialist lenders will be willing to look at a single year of accounts as well as taking your current income and forecasts into account.
Bank statements - Six months of both personal and business bank account statements serve to back up your figures and importantly, confirm your current debt obligation and affordability.
Proof of deposit - A 10% deposit is a good level for a self-employed mortgage, though more will help secure better rates. Showing that you have the deposit available as well as being able to provide proof of provenance if requested will help secure your mortgage.
ID and proof of address - Basic details to prove your identity are essential. Passport or driving licence as well as utility bills or bank statements are sufficient.
Proof of other income - If you have additional income streams, for example investments or income from rental properties, clearly setting this out to be considered will improve your loan-to-income level and buying power.

Partnering with Clifton Private Finance for Your Self-Employed Mortgage

When you use a specialist self-employed mortgage broker like us at Clifton Private Finance, you give yourself the best possible chance of obtaining a high-value / low-rate mortgage. We will help you by:

Providing access to the wide range of specialist self-employed mortgage lenders in the UK marketplace.
Working with you to present your finances to the lender in the most efficient way.
Helping you prepare your paperwork and make the application.
Opening the door to larger mortgages that consider multiple income streams.
Finding the best deals and lowest rates available.
Evaluating and explaining the mortgage contract to ensure there are no confusing terms or unexpected surprises.
Obtaining a flexible mortgage that works for you both now and in the future, taking into account the potential changes that may come.

Don’t let your self-employed status stand in the way of homeownership. With a specialist self-employed mortgage broker on your side, you can secure a home loan that reflects your true earning power. Contact Clifton Private Finance today - together we’ll get you the mortgage you deserve.

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