Self-Employed mortgage brokers in Blackpool

Self-Employed mortgages in Blackpool: what to know

Self-employed applicants are not treated worse than employees, but they are assessed differently. Lenders want to see a track record — usually two years of accounts or tax calculations, occasionally one — and they differ substantially in what income they will actually count. Sole traders, company directors and contractors are each assessed on a different basis. For self-employed borrowers in Blackpool, choosing the right lender is often the difference between a comfortable approval and a decline.

• Sole traders are generally assessed on net profit; company directors on salary plus dividends, though some lenders will use salary plus retained profit, which can be far more generous.
• Day-rate contractors are often assessed on an annualised day rate rather than accounts, which frequently produces a much higher borrowing figure.
• Most lenders average the last two years, but some use the most recent year alone. If your income is rising, that difference is significant.
• Aggressive expense claims reduce declared profit and therefore borrowing power. It is worth understanding that trade-off with your accountant well before you apply.

What matters locally in Blackpool

The central and South Shore districts contain streets of former boarding houses converted into flats and bedsits, much of it now private rented. Bispham, Marton and Stanley Park are more settled owner-occupier suburbs with interwar semis, and Lytham and St Annes to the south are a distinctly higher-value market. Poulton and Thornton draw families out of the town. Coastal exposure means salt-air deterioration on older render and roofs is common, and some low-lying areas carry flood-risk considerations. Flats above commercial premises are widespread along the main roads and are a recurring source of declined applications.

• Flats above shops, takeaways or licensed premises, which many lenders restrict or decline, particularly where the commercial use is food or drink.
• Former guest houses converted to flats or bedsits, where lenders scrutinise the quality of conversion, the size of the units and the leases.

Questions worth asking a self-employed broker

How many years of accounts do I need in Blackpool?

Two years is the common requirement. A smaller number of lenders will consider one year, usually with a larger deposit or where you were previously employed in the same line of work.

What income will a lender actually use?

It depends on your structure. Sole traders are typically assessed on net profit, company directors on salary plus dividends, and some lenders on salary plus retained company profit. Contractors are frequently assessed on an annualised day rate.

Do I need my accounts signed off by an accountant?

Most lenders accept SA302 tax calculations with the corresponding tax year overviews from HMRC. Some also want accounts prepared by a qualified accountant, particularly for limited companies.

Can I get a mortgage in my first year of trading?

It is difficult but not impossible, especially if you moved from employment into self-employment doing similar work. Expect a narrower lender pool and a larger deposit requirement.