If you’re running your own business, and hoping to get onto the property ladder, take a closer look at our Entrepreneur Mortgage that’s designed exclusively for people like you.
Working for yourself can mean that your income varies. And if you’re not able to prove a regular income, you may find it difficult to get a mortgage with most traditional lenders. Trying to arrange a better deal on an existing mortgage can be just as tricky.
We understand that being self-employed puts you in a unique position. You may want to focus on the growth of your business and choose not to take a large salary during the early years. But you may also have other forms of income that could mean you’re able to repay a mortgage for the home you really want.
That’s why, unlike most high-street mortgage providers, we don’t make our decision to lend based solely on your salary or dividends. After all, these may not be a true reflection of your ability to repay.
Helping you get a great deal
At the Scottish, we look at each mortgage application on an individual basis, instead of relying on automated credit scoring. And although we do have certain lending criteria, our team of individually assigned underwriters will consider cases that other lenders wouldn’t.
We look at the bigger picture
If you’re running a company, working in partnership or even going it alone, it could be reassuring to know that we’ll look at the retained profit and net profit performance of your business – not just your salary and dividends.
Our team of skilled underwriters have the experience to assess all types of self-employment. And we’ll work with you, and your accountant, to fully understand your business.
A fair and flexible approach
Most importantly, we’ll do all we can to help you. For example, if you are looking for a loan to value of less than 80%, we’ll consider just one year’s worth of accounts, plus a projection for the following year.
We also offer highly competitive rates, so if you already have a mortgage and want to switch to a better deal you can re-mortgage with us. As our re-mortgage packages also include a free valuation and free legals, we can help you save money, too.
5 great reasons to choose an Entrepreneur Mortgage from the Scottish
Our Entrepreneur Mortgage could be just what you need to get the home that you want
As a business owner, you’ve already achieved an amazing goal. But what if you want to be a home owner, too?
The requirements of most lenders can make it difficult for entrepreneurs and people just starting out on their business journey to get a mortgage. But at the Scottish, we think you deserve a fair deal. One that takes into account not just your salary, but the strength and potential of your business as well.
That’s why we’ve designed a mortgage that works for you – whether you’re a sole trader, a director of a limited company, working in a partnership, or even a professional within an established practice.
For mortgages of more than 80% loan to value
Please note that our current maximum loan to value is 85%.
For sole traders or partners:
- We’ll consider the average share of the last 3 years’ net trading profit.
- Where there is only a 2-year track record, we may also take into account an estimate or projection for the coming year, as long as:
- Annual turnover is level, or progressively rising.
- Net profit (and share of net profit) is level or progressively rising.
- Income drawn from the business does not exceed the share of net profit in any accounting period.
For directors of a limited company:
- We’ll consider the average salary/dividend for the last 3 years and any retained profit.
- Where the company has only a 2-year track record, we may also take into account an estimate or projection for the coming year, as long as:
- Annual turnover is level, or progressively rising.
- Net profit is level or progressively rising.
- Salary plus gross dividends are level or progressively rising.
For mortgages of less than 80% loan to value
For sole traders, partners and company directors:
- Our underwriting team will assess the sustainable income, with reference to at least one year of financial history (supported by either final accounts, or an accountant’s certificate) and a projection for the coming year.
- The type of business and number of shareholders can influence any mortgage decisions.
YOUR QUESTIONS ANSWERED
Who is eligible?
This mortgage is designed for people who are: sole traders; company directors; trading in a partnership; self-employed contractors with their own limited company; and self-employed professionals (e.g. solicitors, GPs, medical doctors, accountants) in their first year of self-employment within an established partnership or practice.
How much can I borrow?
You could borrow up to £500,000. A mortgage is a big financial commitment in addition to your existing obligations in running a business. As a responsible lender, we think carefully about the amount you can borrow. We assess all applications on an individual basis and the amount you can borrow will depend on your circumstances. Any existing financial commitments will also be taken into consideration when calculating affordability.
How much deposit will I need to put down?
This can range from as little as 5% to 20%, depending on your individual circumstances.
What happens if I want to move house?
If you move home and want to transfer this mortgage to a new property, you can do this if the application satisfies the normal lending criteria of Scottish Building Society.
What are the interest rate options?
For current mortgage rates, please ask for details at your local branch or visit our website https://www.scottishbs.co.uk/mortgages
Anything else I need to think about?
Buildings Insurance must be arranged prior to funds being released.