Finding the right mortgage brokers or advisers for self-employed individuals in London

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Find the mortgage brokers for self-employed individuals near you in London

Mortgage brokers for self-employed individuals in London play a crucial role in helping navigate the unique challenges and opportunities in the mortgage market for those who work for themselves. These brokers are professionals who understand the intricacies of self-employed income, offering tailored advice and solutions. They can be instrumental in finding competitive mortgage products that align with the specific financial situations of self-employed clients, ensuring that the process is as smooth and successful as possible. With their expertise and knowledge of the latest market trends, mortgage brokers for the self-employed in London are essential partners in securing the right mortgage deal.

What are the best mortgage brokers for self-employed in London?

To be considered among the best mortgage brokers for the self-employed in London, a firm or individual needs to demonstrate a number of key qualities:

Expertise in self-employed mortgages: A deep understanding of the unique challenges and requirements faced by self-employed individuals in securing mortgages is crucial. This includes knowledge of various lenders’ criteria and the ability to navigate complex income structures common among the self-employed.

Access to a wide range of lenders: The best brokers have access to a wide array of mortgage products, including those not available on the high street. This allows them to offer more tailored solutions that meet the specific needs of self-employed clients.

Personalised service: Each self-employed client’s financial situation is unique. The best brokers offer personalised service, taking the time to understand each client’s individual circumstances, income streams, and future plans.

Transparency and communication: Clear communication about the mortgage process, fees, and any potential challenges is essential. This includes keeping clients informed throughout the application process and being upfront about the likelihood of approval.

Positive client feedback: Client testimonials and reviews often give insight into the quality of service provided by a broker. High satisfaction levels and positive feedback are indicators of a broker’s ability to effectively serve self-employed clients.

Ongoing support and advice: The best brokers offer support beyond just securing a mortgage. This can include advice on how to protect the mortgage, such as through insurance and assistance with future financial planning.

Regulatory Compliance and Professionalism: Adherence to financial regulations and maintaining a high level of professionalism is essential. This ensures that clients receive advice that’s not only helpful but also legally compliant and ethical.
While these criteria do not single out specific brokers, they provide a guideline for what to look for when seeking the best mortgage broker for self-employed individuals in London.

How to find the best mortgage brokers for self-employed near me

To find the best mortgage brokers for self-employed individuals, you can start by conducting thorough research and gathering recommendations. Key steps include:

Asking for referrals: Reach out to friends, family, and colleagues who have used mortgage brokers. Their first-hand experiences can be invaluable. Additionally, real estate agents can be a great source for recommendations as they often have connections with mortgage brokers who have a good track record.

Reading online reviews: Platforms like Google and Yelp offer reviews that can provide insights into the experiences of other clients with specific mortgage brokers. Pay attention to comments about the broker’s communication, problem-solving skills, and overall satisfaction levels of their clients.

Comparing broker services: Look for brokers who offer flexible lending criteria, fast pre-approval, competitive rates, and dedicated loan officers. Different brokers may have different strengths, such as providing alternative options for borrowers who may not qualify for traditional loans or having expertise with first-time home buyers.

Verifying credentials: Ensure that the mortgage broker is licensed. You can check their credentials through your state regulator or the Nationwide Mortgage Licensing System & Registry. The Better Business Bureau can also provide information about any complaints against the broker and their resolution.

Personalised approach: Choose a broker who is willing to understand your unique situation as a self-employed individual. This includes understanding your business and financial circumstances to match you with the best-suited lender.

Specialisation in self-employed mortgages: Some brokers, like Self Employed Mortgages, specialise in offering services to self-employed individuals, understanding the nuances and challenges they face in the mortgage application process.

Remember, the right mortgage broker for you will be someone who understands the specific challenges of being self-employed and can offer tailored advice and services to meet your needs.

Do I need a specialist mortgage broker if I’m self-employed in London?

While it’s not strictly necessary to use a specialist mortgage broker if you’re self-employed in London, there are several compelling reasons why it may be beneficial. First, self-employed individuals often have more complex financial situations than salaried employees, with varying income streams and tax considerations. This can make it more challenging to present a clear and favourable financial picture to lenders.

Specialist mortgage brokers have a deep understanding of these complexities and are well-versed in the types of documentation and evidence that lenders need to see from self-employed applicants. They can help you prepare your application in a way that maximises your chances of approval.

Moreover, these brokers typically have relationships with a broader range of lenders, including those who are more amenable to lending to self-employed individuals or who offer products specifically designed for them. This can be a significant advantage, as not all lenders are equally receptive to self-employed applicants.

How do I find a mortgage broker in London who specialises in self-employed mortgages?

To find a mortgage broker in London who specialises in self-employed mortgages, there are several effective approaches you can take:

Online search: Start with a simple online search using keywords like “mortgage broker for self-employed in London”. This should provide a list of brokers who advertise their expertise in this area.

Use of online directories: Websites like Yell, Google Maps, or Yelp can help you locate mortgage brokers in London. You can then check their websites or contact them directly to confirm if they specialise in self-employed mortgages.

Check financial trade associations: Financial trade associations such as the National Association of Commercial Finance Brokers (NACFB) or the Association of Mortgage Intermediaries (AMI) may have directories of member brokers who focus on self-employed mortgages.

Personal recommendations: Asking other self-employed individuals who have recently secured mortgages for their recommendations can be highly beneficial. Personal experiences often provide valuable insights into a broker’s expertise and customer service quality.

Consulting financial advisers: If you already have a financial adviser, they may be able to recommend a reliable mortgage broker experienced in working with self-employed clients.

What are the fees charged by mortgage brokers for self-employed people near me in London?

Fees charged by mortgage brokers for self-employed individuals near you in London can vary. Here are some key points regarding these fees:

Fixed fee: The typical fixed fee for mortgage broker services ranges between £300-£600. The average cost in the UK is currently around £500. However, some brokers may charge upwards of £1,000. This fee can be charged upfront or upon completion of the mortgage transaction.

Percentage-based fee: In some cases, brokers may charge a fee based on a percentage of the mortgage amount. For instance, a 1% fee on a £250,000 mortgage would amount to £2,500.

Combination of fees and commission: Some brokers use a combination of fee models, such as charging an hourly rate along with receiving a commission from the lender.

Commission from lenders: All mortgage brokers typically receive a commission from the lender, usually around 0.35% of the loan size. This commission is an additional income for the broker, separate from any client fees.

Fee-free options: There are brokers who operate on a fee-free basis for their clients, earning solely through commissions paid by the lenders.

When choosing a mortgage broker, it’s essential to consider the type of fee structure they use and how it aligns with your financial situation. It’s also advisable to confirm that the broker is authorised and regulated by the Financial Conduct Authority for added protection and assurance of quality service.

What are the challenges of getting a mortgage as a self-employed person in London?

Securing a mortgage as a self-employed individual in London can present several challenges, primarily due to the nature of self-employment income, which is often seen as less predictable and stable compared to a regular salary. Here are some key challenges self-employed individuals face when applying for a mortgage:

Proof of income: Lenders typically require detailed financial documentation from self-employed applicants to assess their income stability and affordability for the mortgage. This may include tax returns, business accounts, profit and loss statements, and bank statements. If your income varies significantly from year to year, it might be more challenging to prove your financial stability.

Type of self-employment: Your status as a sole trader, limited company director, partner, or contractor can influence how lenders assess your income. For example, if you’re a sole trader, lenders will generally consider your net profit as income. For limited company directors, income may be assessed based on salary and dividends or retained profits in the company.

Credit history: Lenders will conduct a credit check, and your credit history plays a significant role in the mortgage approval process. Missed payments, defaults, or other credit issues can adversely affect your application.

Lender criteria: Lenders’ criteria for self-employed individuals can be more stringent. Some might require a longer trading history or more substantial proof of income stability. It’s crucial to find a lender whose criteria match your financial situation.

Mortgage products: While self-employed individuals have access to the same mortgage products as employed applicants, finding a lender who understands the nuances of self-employment income is key. A lender’s comfort with varying income levels and their approach to assessing self-employed income can impact the mortgage terms offered.

Changing market conditions: The mortgage market is dynamic, and lending criteria can change, affecting the availability and terms of mortgages for self-employed individuals. Economic factors, such as the impact of the pandemic, have also influenced lenders’ approaches to self-employed mortgages.

Professional advice: Consulting a mortgage broker experienced in self-employed mortgages can be beneficial. They can provide tailored advice, help you understand the best mortgage options based on your circumstances, and improve your chances of mortgage approval.

Navigating these challenges effectively requires careful preparation, such as maintaining accurate and up-to-date financial records, keeping a good credit score, and seeking professional advice. Despite these challenges, many self-employed individuals successfully secure mortgages by presenting a strong, well-documented financial profile and working with lenders and brokers who understand their unique needs.

How much income do I need to qualify for a mortgage as a self-employed person in London?

The income requirements for securing a mortgage as a self-employed person in London can vary based on different factors, including the type of self-employment and the lender’s criteria. Generally, if you have consistent and well-documented earnings and a reasonable deposit (around 10% of the property price), you could potentially borrow approximately 4.5 to 4.75 times your gross annual income. This calculation is typically based on the income before tax.

For self-employed individuals, lenders usually assess income based on the last two or three years of accounts or tax returns. The exact requirements can vary depending on whether you are a sole trader, limited company director, partner, or contractor. For instance, if you’re a sole trader, lenders often use your net profit as your income, taking the average income from the past two or three years. If you are a limited company director, your income can be assessed based on salary and dividends or, in some cases, retained profit in the company.

It’s also essential to maintain a good credit score, as lenders will conduct a credit check during the mortgage application process. A high credit score can positively influence your mortgage application and might also affect the interest rates offered.

As self-employed income can be more complex than standard employment income, it’s advisable to consult a mortgage broker or advisor who specialises in self-employed mortgages. They can provide tailored advice and help you understand your options based on your specific financial situation and the current market conditions.

I’m a company director – how will my dividends be treated for a mortgage application?

As a company director applying for a mortgage, how your dividends are treated can significantly impact your application. Generally, lenders consider both salary and dividend income when assessing your mortgage affordability. However, the specific approach can vary depending on the lender.
Most lenders calculate your income by averaging your remuneration and dividends over the last two years, although some may use only the latest year’s figures. This average is then used to determine how much you can borrow, typically up to 4.5 times your income. It’s important to note that lenders will look for regularity and reliability in your dividend income, similar to a wage, and may require a letter from your accountant confirming its regularity and history.

In some cases, lenders may also consider your company’s net profits in addition to your salary. This approach can be beneficial if your company’s profits have increased recently, as it might allow you to borrow more based on the higher income reflected in your recent self-assessment tax calculation. However, lenders will scrutinise whether these increased profits are sustainable. If your company’s latest net profit is significantly higher than in previous years, lenders might seek additional information to ensure the increase is consistent and not due to one-off factors.

It’s also worth noting that some specialist lenders may take a more flexible approach, considering factors like retained company profits in their lending decisions. This can be particularly beneficial if your business retains a significant amount of its profit rather than distributing it as dividends.

I’m a freelancer with irregular income – can I still get a mortgage?

When applying for a mortgage as a company director, dividends play a crucial role in the assessment of your income. The way dividends are treated can vary between different lenders, but they are generally included as part of your overall income for mortgage applications.
Mortgage lenders often consider both your salary and dividends when determining your total income, which subsequently influences the lending levels they offer. This approach is quite common, as many company directors choose to pay themselves a combination of salary and dividends to optimise their tax liability.

However, it’s important to note that not all lenders view dividend income in the same way. Some may be hesitant to consider dividends if they are not regular or if they don’t represent a sustainable and reliable indicator of your monthly income. Lenders typically prefer to see a consistent history of dividend payments, as this demonstrates stability in your income.

To successfully include dividend income in your mortgage application, you will need to provide certain documentation. Lenders typically require tax calculations, bank statements, and company accounts that accurately reflect your dividend income. These documents help lenders assess your capability to make mortgage repayments. Most lenders look for a dividend income history of at least two to three years.

Additionally, some lenders are open to considering retained earnings in the company when calculating mortgage affordability, particularly if you choose not to distribute all profits as dividends.

To maximise your mortgage approval chances with dividend income, it’s beneficial to consult with an experienced mortgage broker. They can guide you in choosing the right lender and negotiate the best terms based on your specific income structure, including dividends.
Overall, understanding how dividends are counted as income and selecting the right lender are key steps in securing a mortgage as a company director paid in dividends.

Can I get a mortgage if I’m a contractor?

Yes, you can get a mortgage as a contractor. Mortgage lenders generally assess contractors differently from regular salaried employees or the self-employed. When applying for a mortgage, a contractor’s income is often calculated based on their day rate. This rate is usually multiplied by the number of working days in a year to estimate annual income.

Lenders may require at least a year’s contract history to understand your earning stability. They also typically ask for evidence of ongoing contracts to demonstrate income continuity. Furthermore, your tax situation can play a role in how lenders view your income. For contractors who pay tax through self-assessment, presenting lenders with an SA302 form can be a way to prove income. Alternatively, if your taxes are deducted at source, lenders might consider your invoices or the contract itself as proof of income.

However, it’s crucial to keep in mind that lending criteria can vary significantly between mortgage providers. Some lenders may be more flexible and understanding of a contractor’s unique working arrangement than others. It’s often beneficial to consult with a mortgage broker who has experience in dealing with contractor mortgages. They can guide you to lenders who are more likely to understand and accommodate your specific situation.

Remember, each mortgage application is unique, and a broker can provide the most accurate advice based on your personal circumstances and the current lending environment.

What documents do I need to provide to a mortgage broker as a self-employed person near me in London?

As a self-employed person in London applying for a mortgage, you’ll need to provide specific documents to prove your income. The requirements can vary depending on your type of self-employment and the lender’s criteria. Generally, the following documents are often required:

Proof of identity and address: Like all applicants, you will need to provide a current ID and proof of address.

For limited company directors: Lenders typically use their personal income and dividends to calculate their average basic income. You will need to provide:

  • Finalised and certified accounts for the last two to three years.
  • SA302 forms or HMRC tax year overviews and tax year calculations.
  • Business bank statements.
  • Some lenders might also request projected income figures or future business plans.

For partnerships: If you own 25% or more of a business as a partner, your share of the net profits will be considered. You’ll need to provide evidence similar to that of limited company directors.

For sole traders or freelancers: Your proof of income is more straightforward as only personal income is considered. You should provide two to three years’ worth of certified accounts and SA302 tax returns or HMRC tax year overview and tax year calculations.

For contractors: Lenders may calculate your income similar to a freelancer, or if you’re on a day rate, some might annualise this to determine your basic salary. You should provide certified accounts, SA302 forms or HMRC tax year overview and tax year calculations, evidence of your contracted day rate, and signed contracts to prove ongoing work availability.

It’s important to note that these requirements can vary between lenders. Consulting with a mortgage broker can provide you with more tailored advice based on your specific situation and the lender’s criteria. They can also guide you on how to improve your chances of being accepted by a lender, such as improving your credit score and having a solid deposit.
For more detailed information and advice tailored to your specific circumstances, it’s recommended to contact a mortgage broker or the lender directly.

Can I get a mortgage online if I’m self-employed in London?

Yes, as a self-employed individual in London, you can apply for a mortgage online. The process may differ slightly from that of employed individuals. You’ll typically need to provide more documentation, such as tax returns, financial statements, and proof of income like bank statements and invoices, depending on the lender. It’s beneficial to have all your documents organised and up-to-date before applying.

You can also seek the assistance of self-employed mortgage advisers who can guide you through the application process, help you find suitable mortgage products, and possibly consider alternative lending options if necessary. For detailed guidance and support, working with a mortgage adviser experienced in self-employed applications is recommended, as they understand the specific documentation and requirements you may need to provide​.

How can I improve my chances of getting a good mortgage deal as a self-employed borrower in London?

Improving your chances of getting a good mortgage deal as a self-employed individual in London involves a few key steps:

Prove your income: Mortgage lenders require HMRC tax documents as proof of your earnings. This includes your SA302 (Tax Calculation) and Tax Year Overview. You should have these ready for at least the last two years. The more comprehensive your income history, the better your chances of approval.

Engage an accountant: Some lenders prefer your income to be certified by a chartered accountant. This adds credibility to your income figures. However, remember that the most tax-efficient income structure might not always be the best for mortgage calculations, especially if you’re a limited company director using dividends as a primary income source.

Maintain a good credit score: Your credit rating plays a significant role. Ensure you have a clean credit history by regularly paying off credit card bills, avoiding overdrafts, and managing any other debts effectively. Tools like Experian Boost can help improve your score.

Increase your deposit: A larger deposit can improve your loan-to-value ratio, making you a more attractive prospect to lenders. Even a small increase in your deposit can push you into a higher LTV band, potentially securing better rates.

Consult a mortgage broker: A broker with experience in self-employed mortgages can be invaluable. They understand which lenders are likely to be more receptive based on your specific situation and can guide you on structuring your income effectively for a mortgage application.

It’s also important to be prepared with all necessary documents and understand how your business structure affects your mortgage prospects. For instance, sole traders, limited company directors, partners, and contractors are all assessed differently by lenders.
By following these tips and working with a professional, you can significantly enhance your chances of securing a favourable mortgage deal as a self-employed individual in London.


What are the interest rates like for self-employed mortgages in London?

The average interest rate for self-employed mortgages in London ranges between 4.5% and 5%. This rate depends on various factors like your loan-to-value ratio, credit history, and the length of your self-employment history. Lenders may offer slightly different rates to self-employed individuals due to perceived risks associated with fluctuating incomes. However, with a good credit history and a solid financial background, it’s possible to secure competitive rates similar to those available to employed borrowers.

Do I need a higher deposit for a self-employed mortgage in London?

Typically, the deposit requirements for self-employed individuals in London are similar to those for employed borrowers. However, offering a higher deposit can sometimes improve your chances of mortgage approval or secure a better interest rate, especially if your income fluctuation is higher than usual or if you have a shorter trading history. A larger deposit reduces the lender’s risk, which can result in more favourable terms.

What are the right mortgage brokers in London for first-time buyers who are self-employed?

Finding the right mortgage broker in London for first-time buyers who are self-employed involves looking for brokers with specific expertise in self-employment and non-traditional income sources. These brokers should have a deep understanding of the unique challenges faced by self-employed individuals, such as variable income and the need for more extensive documentation. They should also have access to a wide range of lenders and be familiar with mortgage products designed to accommodate the self-employed. Ideally, these brokers will provide personalised advice, helping to navigate the mortgage application process and secure competitive rates despite the complexities of self-employed financial situations.

I have a bad credit history - can I still get a mortgage as a self-employed person?

While having a bad credit history can make it more challenging to secure a mortgage, it’s not impossible for self-employed individuals. You might need to seek out lenders who specialise in offering mortgages to people with poor credit histories. Be prepared for potentially higher interest rates and stricter lending criteria. Working with a mortgage broker who has experience with bad credit cases can be beneficial in navigating these challenges.

Can I remortgage my properties as a self-employed in London?

Yes, you can remortgage your properties in London as a self-employed individual. Lenders will require you to demonstrate your income and prove the stability of your earnings over a certain period, typically through your SA302 forms, tax year overviews from HMRC, and business accounts if applicable. It’s crucial to show lenders that you have a reliable income to support the mortgage repayments. Working with a mortgage broker who has experience in self-employed remortgages can be beneficial, as they can guide you through the application process and help you find lenders with favourable terms for self-employed borrowers.

I am a self-employed landlord in London- what are the best mortgage brokers in London for buy-to-let mortgages?

The best mortgage brokers in London for buy-to-let mortgages are those who specialise in investment properties and understand the unique challenges and opportunities that self-employed landlords face. Look for brokers with a strong track record of securing competitive buy-to-let mortgage deals who have access to a wide range of lenders, including those that offer products specifically designed for buy-to-let investors. It’s also beneficial to choose a broker who offers personalised advice for self-employed, taking into account your investment goals, rental yield expectations, and any tax implications. Reviews and recommendations from other property investors, as well as professional accreditations, can also be good indicators of a broker’s expertise and reliability in the buy-to-let market.

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