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FIRST TIME
BUYER

You’ll be classified as a first-time buyer if you – and anyone you are buying with – are purchasing your first residential property.

We’ll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence. That way, when you're ready to make a decision, you can do so knowing that you've got all the facts.

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  • Best Mortgage Since 2002.

  • About
    Donakd Zain

    CEO At Pento

15

YEARS OF EXPERIENCE

1080

MORTGAGES ARRANGED

270M

FUNDS
SECURED

100%

CUSTOMER SATISFACTION

For limited companies, lenders will assess a director’s income based on the salary they take from the business. Salaries will be considered along with dividends or a share of net profit.

Directors are often advised by their accountants to take a base salary up to the tax-free threshold and then to draw dividends for any further income. As a result, a lot of profit can be retained in the business.

This is because directors may want to use capital to further expand, not to mention paying less tax! The drawback to this is that lenders will only consider the income that is actually withdrawn from the business.

For more information about Director mortgages please Contact Us

Your home may be repossessed if you do not keep up repayments on your mortgage

When a contractor’s pay is based on an hourly, daily or weekly rate – with contract from different sources varying, you are probably not able to give a figure for an annual salary, or provide the two or three years’ worth of accounts that typical mortgage providers like to see when assessing your application for a mortgage.

To address this, specialist mortgages for contractors have been set up so that you can borrow money based purely on your contract rate. When making their affordability assessment during the application process, those lenders that are used to dealing with contractors will give far more weight to your current status and ongoing agreements than your past history.

For more information about Director mortgages please Contact Us

Your home may be repossessed if you do not keep up repayments on your mortgage

When applying for a mortgage, a sole trader must have at least 12 months of trading history. If you have more trading history, then your assessment is usually based on the last three years. Lenders assess trading history to calculate your affordability. This is based on the income you’ve declared.

If you’re a contractor registered as a sole trader, you may be able to get a mortgage with less than 12 months of trading history. Some lenders allow contractors to use day rates to calculate affordability.

In addition to this, lenders calculate affordability on gross income as opposed to net income. This is advantageous, as it allows applicants to maximise their loan amount.

For more information about Director mortgages please Contact Us

Your home may be repossessed if you do not keep up repayments on your mortgage

Mortgages tailored specifically for those working in professional fields typically have reduced rates and fees in comparison to regular mortgages. Professional Mortgages can often be approved faster due to the profession you’re in.

Statistically, professional borrowers are seen as low risk by lenders. From understanding your career choice, lenders can make certain assumptions on whether a mortgage is viable. As a result, you may be offered certain flexibility on deals, simply because of your employment.

For more information about Director mortgages please Contact Us

Your home may be repossessed if you do not keep up repayments on your mortgage

If you own more than 20% of a business from which you earn your main income, then most lenders will view you as self-employed. Furthermore, your business structure will be taken into consideration by lenders.

The majority of lenders will assess the affordability of a mortgage based on your net income or net profit. The way lenders calculate this figure varies. Some lenders will base the affordability on your most recently declared income. Other lenders will calculate your affordability on an average of the past two or three years’ accounts.

For more information about Director mortgages please Contact Us

Your home may be repossessed if you do not keep up repayments on your mortgage

Typically, you will need to have a minimum income of £25,000, and typically your rental income to be 125-145% of the mortgage, but this varies from lender to lender.

Some Buy to Let lenders will solely assess the affordability of the mortgage. Lenders calculate this by ensuring the annual rental income is at least 125% of the annual mortgage interest payments. This means for every £1,000 you’re paying in mortgage interest each year, you would need at least £1,250 a year in rental income. This is usually quite realistic, as the rental income often covers the interest payments by more than 125%.

For more information about Director mortgages please Contact Us

Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority.

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We could help if you’re buying your first home, moving to your next one or remortgaging. Find out how we can help you find the right mortgage.

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  • Help To Buy Mortgages

    Help to Buy allows a buyer to purchase a property on a new build development with assistance from the government in the form of an equity loan. You must contribute a minimum of 5% deposit, and then the government can assist with an equity loan of 20-40% of the property's value, depending on the location of the property.New build mortgages

  • New Build Mortgages

    New build properties are a popular choice, particularly for first-time buyers. You can move in without having to worry about decorating or renovating and you can often tailor the specifications to your own taste.

  • Shared Ownership Mortgages

    Shared ownership is a way of purchasing a share of a property from the housing association. The housing association retains the remaining share, which the buyer rents from the association. This scheme provides qualifying buyers with an opportunity to get a foot on the ladder if properties on the open market are outside of budget, or to purchase in a more expensive, central location.

  • Offshore mortgages

    An 'offshore mortgage' is the term used to describe lending for clients living overseas (both UK ex-pats and non-UK citizens alike), seeking to purchase or remortgage a property within the UK.

FAQ