To all of you who are self-employed -you know how your business is run and how you can afford a specific monthly payment for a mortgage each month.
But, do not lose sight of the fact that your mortgage is going to be underwritten and assessed by an underwriter at the Bank or Building Society, this person may have passed all of their ‘Risk’ exams. This underwriter is likely to have an industry average of 24 years old (Being generous) and will not have been employed in a bank/Building Society during an economic down-turn like we are currently in. But most importantly is unlikely to be able to actually read a set of annual accounts.
We have had a number of instances were we have been told cases have had to go to a more “Senior” underwriter as the “tick-box jockey” can’t possibly cope with a self-employed applicant. So for all of those of you out there who are self employed make sure you are getting the right independent mortgage advice before looking to apply for that new mortgage, as the choice of lender could be key.
Andrew Fowler worked for Limetree Financial Services until December 2010. Feel free to contact another member of our team for help or advice.