Member Article

Dispelling Myths for Self Employed Mortgages

MG Financial Solutions Ltd is a team of mortgage and protection advice experts that this year expects to hit over £50m of successful applications for clients.

Martin Graham, who heads up the team, is keen to dispel the myths surrounding mortgages for those that are not in ‘conventional’ full time employment. He said:

“Our team has recently been enjoying exceptional success with sole trader, self employed and director level applications, where finances are positioned a little differently to getting a regular, monthly salary from full time employment.

“Many people who work like this think that they will struggle to get a mortgage, need a bigger deposit or will not receive a favourable rate. However, we are proving every day to our clients that with the right support from a qualified mortgage advisor, there is no reason for this to be the case.

“As a general rule of thumb it is worth remembering that lenders will generally require two years worth of financial accounts, evidence of income and a good track record.

“If you have this all in hand then the process of dealing with a mortgage advisor to achieve your mortgage will be a lot smoother than most anticipate. There are no restrictions to lenders and you will be offered the same rates and level of deposit as everyone else.

“But what about if you haven’t been in business for two years yet? We are demonstrating regularly that this doesn’t rule you out. What you do need is actually quite simple. You must have financial records for one year, and proof from your accountant that you are a stable business.

“A good mortgage advisor will put a case to the underwriters of why they view you to be a solid borrower. This will include things like experience in the field of your business – a track record in your industry is necessary, so if it is a new venture plus a new industry for you, you may need to wait. However, as an example if you are a tradesperson who has been an electrician for 15 years and has gone out on your own in the last 18 months, then your case is strong.

“The best advice I can give to my clients is to make sure all your bills get paid on time in the run up to your application and ensure you get all your credit in order. Tidy up your finances, then there is less for the underwriters to consider.”

MG Financial Solutions recently secured a mortgage for Antonia Brindle, a self employed PR and marketing consultant who owns Get Brindled. Although Antonia had been self-employed for well over a decade, she has recently changed her company into limited status, with one year of figures. She said:

“The team at MG Financial Solutions is great. The mortgage application was a little bit complicated as my partner gets paid on a rota basis with enhancements, so it wasn’t just my income we thought we would have to prove. Martin sorted it all out; got us a great rate and we actually managed to borrow more money for less a month than we had been offered by going direct to a lender. I wholly recommend this service!”

Situated in Cobalt, North Tyneside, the MG Financial Solutions team of four has over 30 years combined experience. MG Financial Solutions is directly authorised by the Financial Conduct Authority, which means the team can search the whole of the mortgage market to give advice on the most suitable mortgage for individual circumstances.

This was posted in Bdaily's Members' News section by Anna Toms .