First Time Buyer – Self-employed Partner with No Accounts

The Client:

We were recently successful in helping a client buy their first home, who had recently become a Partner within a GP practice.

The Scenario:

Typically, when you become a Partner of a GP practice you a treated as “self-employed”. A Partner will take a share in the profits (and losses) of the practice. Compared to a salaried (employed) GP who is employed on a contract, on a basic salary by the practice.

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This can pose an issue when looking to take out a mortgage as typically lenders will need at least 2 years history in that role, being self-employed. To a Lender anything less can be deemed risky. Due to the nature of being self-employed, income will typically fluctuate. As a result, Lenders risk appetite is high as they need to be sure that the business can prove a sustainable track record of earnings by way of 2 years accounts.

Therefore, on the face of it our client wouldn’t be able to get a mortgage having only just joined the practice and not having the standard track record lenders demand.

The Solution:

However, this wasn’t the case for our client. This is where our expertise came into play, being a Specialist Self-Employed Mortgage Broker we were able to source a market leading deal with a well-known High Street Lender.

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All the Lender required instead of the typical 2 years accounts, was a letter from either the head partner OR Practice Accountant detailing the level of projected drawings the client was expected to receive for the year. In addition they also required to see the detailed Practice Accounts to back up the letter.

To make things even better, we were able to obtain a ratio of 5.5 x income and also up to 90% loan to value, which represented an excellent deal for the client who was delighted with this outcome.

Summary:

Being self-employed for less than 2 years doesn’t necessarily mean that you are unable to get a mortgage. Working with a Specialist Mortgage Broker that fully understands the market and what options are available to self-employed persons such as Partners, GPs & Contractors etc; is the best way of not only ensuring you can successfully secure a mortgage, but equally that you can achieve the highest loan to value and income multiples.

If you have any questions relating to Residential Mortgage, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 0113 8730 740. Alternatively, please complete this short online form and one of our Advisors will call you right back.