Know Bedfordshire, Hertfordshire & Buckinghamshire Self-Employed Mortgages
Self Employed Mortgages
How to get a mortgage when you're self-employed
The biggest misconception about mortgages for self-employed people is that they are difficult to get. In reality, self-employed borrowers have access to the same range of mortgage products as everyone else.
The key is to be able to prove that you have the income to make the monthly repayments. This can be more challenging for self-employed people, as they don’t have payslips like employed people do. However, there are a few things you can do to make the process easier:
The key is to be able to prove that you have the income to make the monthly repayments. This can be more challenging for self-employed people, as they don’t have payslips like employed people do. However, there are a few things you can do to make the process easier:
- Provide two years' worth of business accounts, SA302s, or tax returns (however have lenders that will accept 1 year)
- Get a reference from your accountant.
- If you are self-employed as a contractor, provide evidence of future work contracts.
There are a number of lenders who specialize in mortgages for self-employed people. These lenders may have more relaxed income requirements, or they may offer other products that are tailored to the needs of self-employed borrowers.
It is also a good idea to get advice from a mortgage broker who specializes in self-employed mortgages. They will be able to help you find the best mortgage for your individual circumstances.
It is also a good idea to get advice from a mortgage broker who specializes in self-employed mortgages. They will be able to help you find the best mortgage for your individual circumstances.
Here are some additional tips for getting a mortgage when you're self-employed:
- Start saving early. The more deposit you have, the easier it will be to get a mortgage.
- Have a good credit score. This will show lenders that you are a reliable borrower. However not essential as have adverse lenders that can help.
- Get pre-approved for a mortgage before you start looking at properties. This will give you an idea of how much you can borrow and what your monthly payments will be.
Getting a mortgage when you’re self-employed can be a challenge, but it is definitely possible. By following these tips, you can increase your chances of getting approved for a mortgage and buying the home of your dreams.