Were you aware that there are 3 distinct avenues of mortgage advice available to you?
No…I thought not!
You can pop into your local Bank or Building Society to see their Mortgage adviser; however, he will only offer you their products and their products alone!
How about an Estate Agent? Indeed! How about an Estate Agent? The chances are if it is one of the major Estate Agents their adviser will be limited to a panel of maybe a dozen or so lenders they work with. This is known as Representative Whole of Market…but obviously with over 100 lenders available it most definitely is not whole of market.
Then you have the genuinely Whole of Market Mortgage Broker who can offer you a range of mortgages from across the entire market with no demands made on him or her by a pay master. They are there to look after your best interests. We at Abode Mortgages Limited are completely non-partisan, Whole of Market!
Find a Specialist!
Many brokers will only work with ‘vanilla’ clients…clients who tick all the boxes for the mainstream lenders. They have their 3 months’ pay slips and their P60’s and that is all these brokers understand!
Try this…ask your broker to explain the difference between salary, dividends and income from property. Ask them how retained profits are treated by lenders and will a lender consider evidence of utilising your annual investment allowance to reduce your tax liability? If they can answer these fairly rudimentary questions without missing a beat then you have found yourself a good broker!
New Start? No Problem!
It is surprising how many Company Directors believe that a minimum of 3 years accounts are required before they can apply for a mortgage. Sadly, this is the generic guidance that comes from many of the less experienced advisors. There are lenders who will work on just 1 year’s accounts together with detailed and realistic year 2 projections. It is not rocket science…it is underwriting a risk! It may well be that the lender requires more detail and they may feel that your business is not yet quite ready to support a mortgage, but you will receive valuable pointers about where you need to be and by when!
Will I need a big deposit?
The rule of thumb is: The Bigger the Deposit, The Lower the Risk - A bigger deposit will always give a feeling of added security for the lender especially if your business has had a decreasing profit over the last couple of years. In instances like this they may well request more details as to why profits have decreased but will rarely be a deal breaker.
At Abode Mortgages we can offer 25 years of Mortgage Market experience and have many Company Directors and Self Employed business owners amongst our diverse client base. Can we help you with your next move?
Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you re-mortgage.