Published 5 October 2016 · Last reviewed 25 February 2017 · Older article — see current rates
Maximum mortgage solutions for Self Employed clients
If you are self employed operating as a Limited company we have a number of lenders that will use the underlying net profit rather than drawn dividends. So if you are keeping money in the business you will be able to borrow more. With almost 82% of new business going via brokers its always worth talking to an independent broker that deals with self employed applicants to find you the very best solution.
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Example from a lender working from salary and dividends
Average dividends over past 2 years £30,000
Average salary over past 2 years £10,000
Total income to be assessed £40,000
Typical income multiple x 4.5
Max loan with lender on salary/dividends £180,000
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Same example using Underlying net profit
Average Profit Before Tax over 2 years £45,000
Average Salary over 2 years £10,000
Total income to be assessed £55,000
Income multiples x 4.5
Max loan with Niche Advice £247,500