Specialists in mortgages for entrepreneurs
At Bower Home Finance, we work with entrepreneurs to create tailored mortgage solutions to align with the complexities of their main income streams. We support our clients in understanding traditional vs non-traditional lending models and take time to understand any complex or diverse income streams in depth so we can provide tailored advice to match your circumstances.
We work with specialist mortgage lenders across the market who understand the nuances of entrepreneurial finance and can review your income streams, including dividends and contractor income, when assessing your application. This means we can help secure the right mortgage for your unique circumstances.
Introduction to mortgages for entrepreneurs
Entrepreneurs come in all shapes and sizes and company structures. Whether you are self-employed, running a limited company or a company director, or part of a Limited Liability Partnership (LLP), at Bower Home Finance, we’ll support you in navigating the mortgage landscape with confidence and secure a mortgage that supports your ambitions as an entrepreneur.
For entrepreneurs, securing a mortgage can feel daunting due to the varied and sometimes unpredictable nature of your income. Whether you operate as a sole trader, company director, or partner in a business, your financial profile is often more complex than that of a traditional employee. This is where working with a mortgage broker who understands self-employment and the intricacies of entrepreneur finances becomes invaluable.
Specialist lenders and private banks are well-versed in assessing mortgage applications from entrepreneurs, some may take into account diverse income streams such as dividend payments, profits from a limited company, and earnings from investments, however this may differ between lenders. With the right expertise, you can find a lender who appreciates the full scope of your business and personal income, ensuring you access mortgage solutions tailored to your unique circumstances.
How much can I borrow with a mortgage for entrepreneurs?
The amount you can borrow with an entrepreneur mortgage depends on a range of factors beyond just your personal income. Lenders will look at the overall financial health of your business, including profits, retained earnings, cash flow, and how consistently the business performs. They may also consider your ownership stake, how long the business has been trading, and your personal credit profile. In addition, lenders assess whether you can afford the repayments by evaluating your income stability, overall affordability, and the money you have available, taking into account your complete financial situation.
At Bower Home Finance, we work with specialist mortgage lenders who understand entrepreneurial income and are open to flexible underwriting. This allows us to secure high-value mortgages, often exceeding £1 million, for clients with complex or non-traditional financial structures. Every case is unique, so we tailor our advice to help you understand your borrowing potential based on your full financial picture.
Introduction to mortgages for entrepreneurs
Securing a mortgage as an entrepreneur can be more complex, especially when your income doesn’t fit the standard mould. Many traditional lenders focus solely on fixed salaries and may overlook the broader financial picture, making it harder for self-employed individuals to get approved or secure competitive terms. Specialist lenders, however, assess affordability and profit by looking at your comprehensive financial situation, including various income streams and business profits, to determine your eligibility for entrepreneur mortgage loans. Income paid as dividends, commissions, or contractor payments can also be considered by specialist mortgage lenders when assessing eligibility, and the suitability of the subject property is an important part of the mortgage assessment process.
At Bower Home Finance, we take a more holistic approach. We understand that your income may come from various sources and may fluctuate year to year. That’s why we evaluate your overall business performance, considering factors like retained earnings and company profitability. Lenders will decide how much they are willing to lend by assessing your financial stability, income consistency, and the profit generated by your business, ensuring that the loans offered are tailored to your unique circumstances. Whether you are buying your first home or remortgaging, moving house involves additional considerations such as providing proof of income, property valuation, and understanding the transfer process. By working closely with you and specialist lenders, we’ll work hard to find you the right mortgage solution that is based on a true reflection of your financial position, not just what appears on your payslip. When choosing a lender, paying attention to interest rates and fees is crucial to ensure overall affordability. Specialist mortgage lenders also assess the security of the loan by carefully evaluating your financial situation, providing an added layer of risk assessment.
Mortgage considerations for owners and directors of limited companies
Securing a mortgage as a limited company director or business owner comes with its own set of challenges, but with the right support and preparation, you can find a lender who understands your unique financial situation and income. Unlike traditional employees, your income may be drawn from a combination of your salary and dividend payments, and your company’s profits and retained earnings can play a significant role in how mortgage providers assess your application.
Most lenders will require at least two years’ worth of company accounts, to get a clear picture of your business’s financial health. They’ll look closely at the profitability of your company, and your personal income streams. For many entrepreneurs, providing a tax year overview and detailed tax calculations can help demonstrate consistent earnings and the ability to afford mortgage repayments.
Specialist mortgage providers can offer a more flexible approach to lending, working closely with mortgage brokers to tailor mortgages to your individual needs and income streams. These lenders may consider a broader range of financial evidence, including bank statements, business accounts, and proof of ongoing profitability.
Ultimately, the process of securing a mortgage as a limited company director is about demonstrating affordability, stability, and the ability to repay the loan. By preparing detailed accounts, and seeking expert mortgage advice, you can present a compelling case to specialist lenders and increase your chances of approval. With the right support, you can secure a mortgage that aligns with your business goals and personal ambitions, allowing you to move forward with confidence.
An award-winning service
The team at Bower are overwhelmed to have won the award for Best Equity Release Adviser Customer Service for the 8th year running at the What Mortgages Awards 2020.
Delighting customers with a great customer experience is at the heart of everything that we do. To win this award is a testament to the importance Bower places on high standards of advice and service that we have been able to provide, even in these challenging times. Read more about our award winning service here.
Fulfil your property dreams
From helping you to get on the property ladder to remortgaging your home with a mortgage for contractors, our specialist mortgage advisers are on hand to help you fulfil your property dreams.
Entrepreneur mortgage specialists at Bower Home Finance
At Bower Home Finance, we specialise in helping entrepreneurs secure mortgage solutions that truly reflect their unique financial situations. Our expert advisers understand the complexities of non-traditional income, whether it comes from business profits, dividends, or multiple ventures, and are experienced in structuring bespoke mortgage strategies that work for you.
If you have transitioned to self-employment within the same industry, you may need to demonstrate ongoing work and income stability in that field when applying for a mortgage.
Whether you’re purchasing a high-value home, investing in property, or refinancing an existing mortgage, our team will guide you through the process with clarity and confidence. We work with a wide network of specialist lenders who understand entrepreneurial income, allowing us to secure mortgages tailored to your individual circumstances.
To take the next step, arrange a consultation with one of our mortgage advisers to discuss your unique circumstances. You can also speak directly with a specialist to explore your mortgage options and get expert guidance tailored to your needs.
Mortgage Specialist
With access to over 500 lenders, Bower will help you release equity and create liquidity to acquire property, whenever you want to buy
FAQs
At Bower Home Finance, our advisers have decades of industry knowledge and experience which can help you navigate the complexities of mortgage applications for entrepreneurs and the evidence you’ll need to provide. This can include recent bank statements, tax year overviews, and accounts prepared by a chartered accountant.
If you’re a sole trader, company director, or part of a partnership, you may also need to supply detailed tax calculations and provide comprehensive details about your business’s profits and performance, and evidence of future business contracts. In some cases, if you are looking to apply for a self-employed mortgage, you may also need to provide evidence of ongoing work and financial stability.
As a business owner, it is important to have a clear understanding of your finances, including your income, expenses, and tax obligations. This will help you in the future when you need to gather the necessary documentation to assist you in presenting a strong case to mortgage lenders when you are ready to proceed with your application. By working closely with a mortgage broker such as Bower Home Finance, you will receive tailored advice and support throughout the process, from helping you prepare the correct documents, to finding the right mortgage to suit your needs.
In the UK, there are many specialist lenders and building societies who offer tailored mortgages for the unique circumstances of self-employed workers and entrepreneurs. These mortgage providers use underwriters to assess each application individually, rather than relying solely on automated systems. It’s important to note that your income from the first year of self-employment may be assessed differently by lenders, and you may be required to provide additional evidence, such as projected earnings or contracts, to support your application and get a mortgage.
By speaking with a mortgage broker and providing documented evidence of your income and financial position, you can secure a mortgage that fits your goals, whether you’re looking to buy your first home, invest in a property, or remortgage your existing home. No matter your business structure, sole trader, limited company, or partnership, understanding your income and preparing the right documentation is key to a successful mortgage application. Which is why at Bower Home Finance, we offer advice and support so you can move forward with confidence and secure a mortgage that suits your ambitions as an entrepreneur.
Yes, whether you’re self-employed or running your own business, entrepreneurs can often have multiple streams of income, including their salary, dividend payments, and business profits, as well as income from different businesses. This variety of income sources can make your financial situation appear more complex to most mortgage providers, however, with the right documentation and an experienced mortgage broker such as Bower Home Finance, an entrepreneur mortgage is possible with multiple income streams.
Our Customer Reviews
IMPORTANT TO KNOW
Bower Home Finance provides independent, impartial whole of market mortgage advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed, would a typical advice and administration fee of £495 be payable.
Speak to one of our dedicated customer specialists or arrange your free, initial no-obligation quote by calling us on 0800 411 8668.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Some buy to let mortgages are not regulated by the Financial Conduct Authority.