Securing the right mortgage in a rapidly evolving property market is pivotal to realizing homeownership dreams. MortgageTek and Furness Building Society understand the diverse financial landscapes our clients navigate, and that’s why we offer a range of mortgage solutions tailored to different needs. Our commitment to flexibility is exemplified in our approach to Furness self-employed mortgages.

Furness Mortgages

Mortgages for Self-Employed: Our Approach

At Furness Building Society, we pride ourselves on our flexible lending approach, enabling us to assess each mortgage application individually. This is particularly advantageous for self-employed individuals, whose income structures may be more complex. Our self-employed mortgage benefits include:

1. Assessment of Pre-Tax Profits: When evaluating affordability, we consider pre-tax profits, recognizing the unique financial context of self-employed individuals.
2. Consideration of All Income Streams: We take into account all streams of income, providing a comprehensive overview of your client’s financial standing.
3. Capacity for Additional Incomes: The potential to earn additional incomes is factored into our decision-making process, acknowledging the dynamic nature of entrepreneurial ventures.
4. Lending Opportunities: Our flexible approach often allows us to lend to clients that other lenders may decline, opening doors for those with non-traditional income sources.

Self-Employed Mortgage Criteria:

Navigating the Path to Homeownership

Understanding the intricacies of self-employment, our mortgage criteria for self-employed individuals are designed to ensure a fair and accurate affordability assessment. Key criteria include:

1. Annual Salary and Share of Profit: We generally consider the annual salary and the applicant’s share of profit before taxation to determine lending capacity.
2. Accountant Confirmation: A full accountant’s reference is essential to confirm the feasibility and sustainability of the calculated salary and profit before tax.
3. Directors and High-Income Sole Traders/Partners: Specific requirements for shareholding Company Directors and sole trader/partner applicants with total income exceeding £50,000.
4. Stability Checks: Considering stability when profits have increased by more than 10%, with additional clarification sought from the accountant.
5. Business Concerns: Emphasizing that concerns about the business may lead to application rejection, even if income and affordability meet requirements.

These criteria ensure a thorough and fair evaluation of self-employed mortgage applications, providing transparency and clarity in the process.

Empowering First-Time Buyers

Furness Building Society is deeply committed to supporting the aspirations of first-time buyers in UK mainland,  While there are exciting career opportunities, the lack of high Loan-to-Value (LTV) mortgages can pose a challenge. To address this, we proudly offer a first-time buyer product for properties in specific postcodes within the UK. We invite you to connect with MortgageTek mortgage advisors to explore how we can assist in making your first home purchase a reality.

Joint Borrower, Sole Proprietor Mortgages: A Helping Hand

Recognizing that first-time buyers may require assistance, we introduce Joint Borrower, Sole Proprietor mortgages as an ideal solution. This option allows close family members to join the mortgage without being named on the title deeds, providing a supportive avenue for early affordability issues, especially when the applicants’ earnings are expected to increase over time.

Joint Borrower, Sole Proprietor Criteria:

Furness Building Society Joint Borrower, Sole Proprietor mortgages are designed with clarity and fairness in mind. To ensure a smooth process, applicants need to meet our current lending criteria, and they should be aware of the following important requirements:

1. Legal Guidance: All borrowers must seek separate and independent legal advice as part of the conveyancing process, underlining our commitment to transparency and legal understanding.
2. Mortgage Deed Signing: It is crucial that all borrowers sign the mortgage deed in front of the Solicitor acting as the conveyancer, and this must be done on a face-to-face basis. This adds an extra layer of security and ensures a clear understanding of the commitment.
3. Borrower Release: If there is a need to release one of the borrowers from the mortgage, approval from the Society is mandatory. Such approval will be contingent on the remaining parties demonstrating the affordability of the mortgage. Any legal costs incurred in this process will be the responsibility of the borrowers.

By outlining these criteria, we aim to provide a comprehensive overview of the expectations and processes involved in our Joint Borrower, Sole Proprietor mortgages.

Unlocking Opportunities with Buy-to-Let Mortgages:

Furness Building Society understands the dynamics of the property market, especially for those looking to invest in Buy-to-Let properties. Our approach is comprehensive, taking into account letting costs, taxation, and the client’s personal income and expenditure, including existing mortgages. What sets us apart is our avoidance of an Interest Coverage Calculation (ICR) in assessing new Buy-to-Let applications, offering more flexibility to our clients.

Buy-to-Let Mortgage Criteria:

For unregulated and consumer Buy-to-Let applications, our criteria are focused on affordability, encompassing the applicant’s full financial circumstances. Key considerations include:

1. Assessment of Overall Affordability: We assess overall affordability based on all current and proposed mortgages, ensuring a holistic view of the client’s financial standing.
2. Property Location: Buy-to-Let mortgages are considered for properties in mainland UK, expanding opportunities for property investment.
3. Loan-to-Value (LTV): The maximum LTV is 80% subject to product limit, which includes fees.
4. Repayment Options: Both interest-only and capital and interest repayment options are considered, allowing flexibility based on individual preferences and financial plans.
5. Minimum Mortgage Amount: We set a minimum mortgage amount of £50,000, with lower amounts subject to referral.
6. Valuation Requirements: The minimum valuation for Buy-to-Let mortgages is £75,000, ensuring a reasonable property value for investment.
7. Exclusions: Notably, we do not accept applications that include Debt Consolidation for Buy-to-Let remortgages, maintaining a focused approach to property investment.

Additional Criteria for Regulated Buy-to-Let:

Recognizing the diversity in property investment, we extend our support to regulated Buy-to-Let applications, particularly for letting to family members. Our criteria for regulated Buy-to-Let are distinct, focusing on affordability and ensuring that the property’s potential conversion to a traditional Buy-to-Let meets specific criteria.

Portfolio Landlords: A Tailored Approach to Multiple Properties:

Understanding the challenges and responsibilities that come with managing multiple properties, Furness Building Society offers a specialized approach for portfolio landlords. Here, we define what constitutes a portfolio landlord and why their assessment differs:

1. Definition of Portfolio Landlord: A portfolio landlord is someone with 4 or more Buy-to-Let properties, irrespective of the lender(s) they are mortgaged with.
2. Rationale for Different Assessment: Recognizing the potential impact of economic downturns on those with multiple properties, we assess across the entire portfolio rather than on a property-by-property basis.

Products and Pricing for Portfolio Landlords:

Portfolio landlords have access to our standard Buy-to-Let products up to 75% LTV, with a maximum of 4 Holiday-Let properties within each portfolio. The products and pricing remain consistent with our standard offerings.

Portfolio Landlord Specific Criteria:

To provide clarity and transparency to portfolio landlords, we outline specific criteria:

1. Maximum LTV per Property: 75% LTV.
2. Maximum LTV across a Portfolio: 65% LTV.
3. Minimum Rental Coverage: 140% of mortgage interest at the pay rate.
4. Experience Requirement: 2 years of experience as a Buy-to-Let landlord.
5. Minimum Income: £40,000 (excluding rental income).
6. Maximum BTL Lending: £750,000 and/or 5 mortgages.
7. Overall Customer BTL Borrowing: £2 million mortgages/10 mortgaged properties.

Submission Requirements:

In addition to standard documentation, portfolio landlords need to complete an Assets and Liabilities statement, and in some cases, a business plan and cash flow statement may be requested.

In conclusion, MortgageTek in partnership with  Furness Building Society remains committed to providing tailored mortgage solutions, ensuring that our clients, whether self-employed, first-time buyers, or portfolio landlords, find the support they need on their homeownership journey. For detailed discussions and personalized assistance, please contact MortgageTek.