Do you know that over 95% of enterprises in the UK (4.5 million) are micro enterprises with fewer than 10 employees? Do you also know that each year more than half a million new enterprises are started and enterprise owners and the self-employed account for one in seven of all people in work?
The self-employed sector is a vitally important part of the UK economy and with more than 4 million self-employed, this sector is an important market in its own right.
When it comes to mortgages, the self-employed can experience problems especially if they’ve been trading for less than three years and if they pay themselves via dividends rather than just salary, as many do.
With half a million new businesses being registered each year, there’s a healthy mortgage market for self-employed borrowers who don’t yet have three years trading accounts. Which is why Saffron has a Self Employed Mortgage which only asks for one years’ accounts along with a projection of future earnings and 6 months’ personal and business bank statements.
What’s more, the product is available up to 85% LTV with a choice of rates discounted for 5 years. Loans are available for either purchase or remortgaging and are also available to first-time buyers. Full product details can be found here (link to self-employed product page on SFI website).
And our Self Employed Mortgage also comes with a capital repayment incentive, which means that borrowers can repay capital at any time and reduce their mortgage interest rate if they move into a lower LTV band. This feature, which is available at no extra cost, is particularly attractive to the self-employed, as they may plan to repay the capital outstanding on their mortgage if they have a good trading year.
As the UK economy continues to pick-up, the self-employed will, like their employed counter-parts, consider moving home or remortgaging on to better deals. The Self Employed Mortgage from Saffron provides a perfect solution, particularly for those with less than three years accounts and for those seeking LTVs of up to 85%.
(Note: facts in the opening paragraph are sourced from SFEDI, the Small Firms Enterprise Development Initiative, a government body for supporting small businesses).