Best Lender For Self Employed?

MaryJane1962

I'm self employed (director of small Ltd company) - can anyone give me names of mortgage lenders (preferably ones with good rates) who aren't fussy about borrowers in my position?

_Andy_

Best bet would be to speak to an IFA. You give no idea of your situation
E.g. is it a remortgage,. purchase, what is the LTV, how long have you been self-employed, can you prove income etc.

foreversummer

We are in a similar position and have found Woolwich to be very good. Also have used Abbey in the past.

We always go via our local broker though as he knows how to present the figures.

Foreversummer

Conrad

Maryjane, the credit crunch has lead to ALL lenders needing to fully justify every loan made is in accordance with responsible lending.

There are some though that have slightly more accomodating criteria when it comes to assesing the total income package of a Director.

C & G
A & L
Nationwide
N Rock

All these will still need the loan to be made responsibly.

One loophole some brokers use is 'FAST-TRACK'. This is where high quality applications under 75%ltv, are granted without income proof but the lender must by law check some of these at random, AFTER OFFER OR COMPLETION.

A lot of brokers are comming unstuck with this.

The Woolwich are a nightmare for service. The poster above was just lucky - many are not.

Also keep in mind the underwriting has been getting tougher with every passing month. You might find you know people who will say they didn't have to proof any income, but trust me these were just the lucky that slipped through the net. Having said that, some people are subsequently being looked at by the Revenue where the mortgage sum is disproportionate to the income stated to the Revenue.

The take home message for everyone now, is times have changed - you might slip through by luck, but chances are you will need to evidence 2 or 3 years income if you are self employed (inc Directorships)

MaryJane1962

Sorry, should have provided more details:
It's a mortgage for a house move at 60% LTV and I've been self employed for 4 years.

payless

Lenders are generally happy to lend based the books of a business thats been running for 4 yrs as the figures are established :-)

That said you mention Ltd company, then self employed - the 2 are different

joo2810

My husband is self employed and we just arranged our mortgage with Halifax through a financial adviser. We put 50% dpwn on the new property and were given a fixed rate of 4.89% for 2 years.

We applied on Tuesday, our IFA was emailed with a confirmation of an offer on Wednesday, the survey was done Thursday and the mortgage offer arrived on my door on Saturday morning.

We were really worried we wouldnt be able to get a mortgage but it was so easy. We werent asked for any proof of earnings either.

Now we are just awaiting the solicitors. Hope you find what you are looking for )

payless

Joo - thats all great ( well some may question 2 yrs fixed .. but who knows it might be whats most suitable for you) - so long as the income figures input to Halifax can be proved if requested ( as the taxpayer owns 43% of this banking group I would assume there are now more spot checks)

joo2810

Yes we will be able to verify our income if requested. I was merely saying that we had no problems getting a mortgage and wasnt asked for any proof at the time.

We have accounts to back up our application if need be.

Why did you comment on the 4.89% fixed at 2 years - what are your views on this?

alien123

Better to get the mortgage done as soon as possible. Seems like the government is getting in and tighten the rules for lending. I guess its too late to fix a broken dam. Like 'introducing air conditioning in tube...after people are sweating, boiling and even dying'.They should have introduced AC since no one can breathe down there. Silly...

longshot

payless - if you have 50% equity you should have no reason to
provide income details as the risk is so minimal it would equate to
a 75% drop in house prices from 2007 and that would be break even
so perhaps a 90% drop would then command the bank to ask for
income details but the situation isn't that bad or doesn't seem to be.

you don't always have to prove your income, an 18 year old
could buy a million pound house if they had no income but 500,000
pounds in the bank, the bank will always get it's money back so virtually
no risk, so please don't be pompous.

different story on a 100% loan.