Self Employed Buy To Let Mortgages
The path to passive income for independent professionals
Find the right mortgage for your needs based on what you earn and how you earn it as a self employed professional.
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Property Investment Opportunities For Self Employed Professionals
There are plenty of ways to make your money work harder, and property investment is one of the best options. However, getting a Buy to Let mortgage can be challenging if you don’t have a regular monthly salary.
For those earning a day rate, meeting the strict criteria set by most lenders can be tough, making it difficult to secure a mortgage of the right size and causing valuable investment opportunities to slip through the net. But not if you have Broadbench in your corner.
We’ll find the right mortgage for you.
To maximise your borrowing potential, you need a lender who understands how you work and earn. Fortunately, we have strong connections with many of them.
By basing affordability on your day rate, our specialists can help you secure the best mortgage and competitive rates, allowing you to purchase the property you have in mind. We’ll guide you through the process and search the market for the ideal solution.
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How do you find me the right Buy To Let Mortgage?
Start by providing us with basic information
Start by providing a copy of your employment history and a recent contract that outlines your day rate. We’ll also require three months of bank statements and proof of ID to get things moving.
Show us that you can afford the fees
You’ll need to demonstrate that you can pay the costs associated with buying the property you intend to rent out. This includes legal fees, survey expenses and the deposit.
Leave the rest of the process to us
Once you’ve found the mortgage deal you want, we’ll handle the search for the best Buy to Let options available and manage all the paperwork on your behalf.
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It’s not exciting, but here’s the legal information you need
Our advice & fees
We provide advice solely on first-charge mortgages. Our flat fee for these services is £500, divided into two payments. We charge £100 when your AIP (Agreement In Principle) is issued, and the remaining £400 is payable on application. If your application doesn’t progress beyond the AIP stage, you’ll only be liable for the initial £100. If we charge a fee and your mortgage does not go ahead, the fee is non-refundable.
Your rights
You may be eligible to claim compensation from the FSCS if we’re unable to meet our obligations. The amount of compensation depends on the type of business and the circumstances of your claim. We can provide more detailed information on request, but, as a general guide, eligible mortgage claims related to advising and arranging are covered at 100%, up to a maximum of £85,000 per person per firm.
Ready to buy an investment property?
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FAQs
What is a Buy To Let mortgage?
A Buy to Let mortgage is where you buy another property specifically as an investment with the intention of letting it out.
How much deposit do I need for a Buy to Let mortgage?
Normally a minimum of 25% deposit.
Is there any tax to pay when I sell my property?
Not for your main residence, but if you have investment properties that were bought on a Buy to Let basis, these will be subject to Capital Gains Tax. Other taxes may also be levied, we recommend you speak with an accountant to establish your tax position.
Can I get a mortgage if I earn a day rate, rather than PAYE?
Yes. Of course, there are factors that impact a contractor’s eligibility, but just by being self-employed, you should not expect to be turned down by a lender as long as they understand contractors and contracting. However, factors that would prevent anyone from securing a mortgage, such as a poor credit history or a bad payment record will apply just as much. to contractors as to employees.
Can I get a mortgage if I have only just started contracting?
Yes! As long as we can see you’ve got a history in the same line of work and in the same industry in which you are now contracting, there are lenders who accept new contractors.
What is the Mortgage process?
A typical journey will look like this:
- Welcome Call
This is an introductory meeting. You’ll meet your Broadbench adviser: they’ll explain our services, our regulatory status and establish a basic understanding of your requirements. - Fact-find
Your adviser will send you a fact-find document for you to complete. Once received, your adviser will schedule a Discovery Call. - Discovery and Recommendation Call
We’ll confirm the details supplied in the fact-find, and discuss your mortgage options: fixed/tracker, term, fees, and your budget. Your adviser will also advise you about life insurance products to protect the mortgage and your family’s lifestyle.Your adviser completes your mortgage recommendation and the KFI (Key Features Illustration) and then will advise you on the AIP process. You’ll both agree what are the next steps: house hunting or booking your mortgage. - AIP (Agreement In Principle)
Your adviser will send you an invoice of £100 to create the AIP. Once payment is received the AIP can be booked. - Documentation
Then adviser will send you a checklist of all the documentation you need to supply to us. You’ll then be invoiced for the remaining £400. - Mortgage Offer
Once all documents are received, we’ll certify that your mortgage is ready to be booked. Your adviser then books your mortgage. Once the mortgage offer is received, we’ll liaise with the lender on your behalf. - Mortgage Review
You let us know your exchange and completion dates. - Mortgage Completion
We’ll let you know as soon as your mortgage completes and then schedule regular reviews during the mortgage term to ensure that the product remains the most suitable for you.
Why should I use a specialist broker?
By all means, go to a high street lender to satisfy your curiosity, but in most cases, the lender will have issues with how income reaches the contractor. High street lenders understand dividends, but business owners, professionals and contractors who are tax efficient and only draw down a minimum salary and dividends to meet their needs won’t look good. Specialist brokers like us go to the same lenders you see in the high street but at the head office underwriter level. This means they are speaking to people with a bigger lending mandate and a knowledge of this sector contractors, and they use the contract to define a contractor’s income.