What is an independent professional mortgage?
An independent professional mortgage is no different from any other mortgage in terms of pricing. The difference is how the lender assesses your application. Many lenders are now coming to terms with the independent professional lifestyle and have chosen to update their lending criteria. They no longer look at traditional forms of income assessment, but rather channel the application towards bespoke underwriting criteria, specifically designed for the independent professional community. In this way, as an independent professional, you can be assessed on a multiple of your annualised rate, allowing you to borrow in line with your true earnings. By using a specialist broker, you can access the same competitive interest rates available to people on PAYE.
Do I qualify?
Every application is assessed on an individual basis but the broad criteria are: 1) You must have a current contract in place. 2) You need to prove continuity in the type of work you do. 3) Borrowers new to independent working are acceptable. 4) Income can be defined via annualised rate. The only documentation CMME requires to support an application is a copy of your current contract, an up-to-date CV, trading accounts (where available), identification and bank statements. CMME can assess how lenders view your circumstances based on feedback from banking sector decision makers, with no obligation.
Who provides the mortgages?
More lenders than ever before have realised the independent professional sector is growing, and have decided to update their borrowing criteria. These include High Street names like Clydesdale, Virgin Money and Nationwide, as well as a growing number of specialist lenders including Metro Bank, Leeds and Kensington. Since we launched, we’ve spent time educating lenders about independent professional remuneration structures and how to understand their true earning potential. As a result, we’ve been able to agree
bespoke underwriting terms with a range of lenders, enabling people like you to borrow based on a multiple of your contract rate.
How is my application assessed?
A standard mortgage application is assessed based on salary plus dividends and/or net profit if you run a limited company. If you’re using an umbrella company then it will be your PAYE income. Traditionally, lending criteria have been based on individuals being either employed, or self-employed. The issue with this traditional approach is that independent professionals don’t fall into either of these categories, meaning the sum you’re able to borrow falls short of what you should be able to secure. When you are unable to provide trading accounts an independent professional application is evaluated based on your gross contract rate, with less emphasis on how you get paid. We use your current contract rate to establish a borrowing figure, and a copy of your CV, to demonstrate your skills and experience.
What rate can I get?
Before independent professional mortgages were created, many contractors, freelancers and consultants had to rely on self-certified mortgages with higher rates and higher fees. But today, with our help, there’s no reason why you shouldn’t be able to secure the same mortgage rates as someone on PAYE. We don’t offer different pricing and we don’t deal with lenders who do because we believe it’s unfair to penalise you. Instead, we work closely with you to understand exactly the kind of mortgage you need, then we research the market to identify the lender best placed to help. We always keep our independent professional rate table up to date so you can stay in touch with best, most competitive mortgage rates out there.
Why should I choose CMME?
We’re dedicated to supporting Britain’s growing community of independent professionals – ambitious, enterprising people like you who’ve backed themselves to make their own way in life.
We know being independent makes you different from the norm and too often that means government and conventional service providers end up leaving you in the lurch. We think that’s wrong and, since we launched in 2004, we’ve made it our mission to do something about it.
We believe being independent shouldn’t stop you buying the home you deserve. We’ve worked long and hard to help lenders understand independent professionals better and we’re ready to bring you the knowhow, the experience and the connections you need to get a great mortgage deal.