If you are looking for a mortgage to set up your own business, then you need to learn in-depth how such types of mortgages work. One wrong step can dissolve your business, which you have taken so much pain in investing in.
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Taking the Help of Specialist Lenders
There are a lot of challenges that you as a limited company director might have to face when it comes to applying for mortgages. You might have gotten in touch with high-street lenders, but none would have come up with a successful solution for the same.
Here is where you can turn Right Mortgage UK company based out at Harrogate, North Yorkshire, England. Their team of specialists is aware of the challenges faced by self-employed owners and gives you the best solution on how to apply for your mortgage loans.
Talking about the challenges, some of the issues that you might come across include:
- You have been in the trading business for less than 3 years
- You may not have withdrawn your retained profit.
- There might be a variation in your annual turnover over the past years resulting in capital turnover being lower
- You might be in joint business with your spouse or family member
In addition to this, many financial institutions will be hesitant in giving you a mortgage, if you have:
- Outstanding debts
- A bad credit history
- The type of mortgage you are applying for
- The interest and term of the mortgage
- Your age
Specialist lenders are small financial markets that offer financial solutions for people who have unique circumstances. These lenders are not high-street lenders or building societies. These lenders will review each case individually and depending on the circumstances will offer you the best financial solutions.
Now, if you are self-employed or operate under the Contract Industry Scheme (CIS), then there are chances that many lenders might become a bit flexible on their rules for the mortgage. This is a scheme set up by HMRC for contractors and sub-contractors
In such cases, if you are a sub-contractor, you can show your contract as proof of income and your daily pay to calculate your gross salary.
Look Before You Leap in Case of Mortgage Loans
When it comes to mortgage loans for limited company directors, you need to do your homework. You need to research the application process, the documents required, and the mortgage loan amount eligibility. Below are certain tips that you need to take into consideration before applying for loans:
- Update your knowledge of all kinds of mortgage loans
- Clear as many outstanding debts and improve your credit history
- Ensure that all your documents are updated, in case they have expired
- Keep all your financial statements ready as proof
- Review the lender company and their client portfolio
Once you finalize your company, you next need to apply for the mortgage. All you need to do is fill up the application form and submit documents such as:
- SA302 forms or HMRC tax statements
- Latest contracts if you are under the CIS scheme
- Your financial statements of at least 2 years
Applying for self-employed mortgage loans is simple, provided you apply through credible companies. Taking the help of specialist lenders can reduce your hassles as they offer you ideal financial solutions based on your current situation.