Getting a mortgage: Tips for The Self-employed

Do “self-employed mortgages” exist? That is a very interesting question!

We do not have specific mortgage products available solely for the self-employed. So you will have access to the same lenders and products as those who are employed. However, for the self-employed, your mortgage journey will require more effort as lenders will ask for more information and more documents to support your mortgage application. 

Here are some tips for you:

Have accounts available

Make sure you have at least two years of accounts available. If you have been trading for less, you still might be able to get your mortgage, but you will have a limited choice of lenders you can approach. You might also need to save more for your deposit, or your mortgage interest rate might be considerably higher.

Prepare documents in advance

Prepare all the required documents in advance. To support your mortgage application, you will need to provide a lot of information. Getting your Tax Calculation and Tax Overview documents, your business accounts, your bank statements, etc ready in advance will help. While a lot of information is available online now and it is easily accessible, lenders might still ask for hard copies and/or originals and getting them together might take a lot of time.

Increase your income

Retaining profit in your business is good for business. However, if you plan to apply for a mortgage then you might consider taking higher dividends or increasing your income (if your business figures allow you to do it). While there are lenders who can take your business retained profit into account when calculating your affordability, the number of such lenders is small. Most lenders take your income and your dividends into account.

Do you need to change the business structure?

Do you really need to change the structure of your business going from sole trader to a limited company for example? Such changes might impact your future mortgage choices, or they even might prevent you from getting a mortgage in the short term.

Use mortagage advisers

Use Mortgage Advisers. Lenders have different mortgage criteria. Your borrowing capacity can be very different lender to lender. Where some lenders might say “No” others might be very happy to have you as their mortgage customer. As Mortgage Advisers, we work with lenders on a daily basis, we know which lender is most suitable and most likely to meet your needs and to offer you a suitable mortgage. So, get in touch with us well in advance.

Are you looking to secure a self-employed mortgage? Speak to one of our advisers.