A person who is self-employed earns their income by working for themselves, through owning a business or freelancing. A self-employed individual can be a sole trader or within a partnership, however they must own at least 25% of the business. They do not work for an employer who pays them a consistent wage/salary.
Can you still get a mortgage?
If you are self-employed you can still apply for a mortgage. It can potentially be more difficult in certain aspects as proving your income can be harder to do; although if you have the right documents and help it can be done. You have to be able to show how much you earn in order to provide the lender with a clear view of whether you will be able to keep up with costs.
Most lenders are likely to give a mortgage to a self-employed individual if they have been working self-employed trading for at least three years and if they can provide two years of accounts and self-assessment tax returns (SA302s). Some lenders can be more flexible, though it is better to be fully prepared so you have a higher chance of success.
In order to find the best lender for your financial situation, speak to one of our advisers today on 0333 320 8658 to further your knowledge.
Being self-employed won’t generally affect your mortgage options – you will not be discriminated/treated differently by most lenders. As long as you provide a reasonable deposit, a good credit rating and you are earning enough income to make the mortgage repayments, it should be very likely that you will be eligible for a mortgage.
Finally, these are some tips for improving your chances of acceptance:
- Keep your accounts, expenses, bills, etc. up to date
- Take help from an accountant if you need it – it’s far better to have your accounts and taxes organised
- Complete SA302s to prove your income
- Speak to a mortgage adviser! With the right information and assistance in finding the best lenders for you, you can’t go far wrong!
If you have any further questions or think you could benefit from some self-employed mortgage advice, then contact us at View Finance today on 0333 320 8658 or drop us an email at info@viewfinance.co.uk – our experienced advisers will be more than happy to help you to the best of their abilities.
