Self-employed Mortgages

If you’re self-employed, it can be difficult to convince mortgage lenders you’re a safe bet, particularly if you haven’t been trading very long. Luckily, you’ve got us on your side and we will support you every step of the way.

  • Specialist knowledge
  • Access to non-standard lenders

Taking the stress out of securing a self-employed mortgage

Whether you are a Company Director, LLP Partner, Sole trader or Contractor, getting a mortgage when you are self-employed can be a challenge, especially if you haven’t been in business for long. Without a contract of employment or regular payslips, how can you prove to lenders that you earn what you say you earn and, more importantly, will continue to do so?

Don’t panic! As the number of people who are self-employed grows, so too does the requirement for lenders to be more understanding and sympathetic. With a decent deposit, plenty of planning and a specialist broker to assist, you’ll have those keys in your hand in no time.

Ultimately, every lender will assess differently and each lender has specific criteria so while one lender might decline, others will happily accept, we just have to find the right one. It’s therefore important to speak to a broker that understands self-employed mortgages, puts in the time to understand your unique circumstances and who is willing to shop around to find you a great mortgage deal. 

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £549.

How will your income be assessed?

If you’re self-employed, your situation will generally fall into one of the three categories below. This will affect how a lender assesses you. 

Sole trader
If you’re a one-man band, you (or your accountant) will need to declare your income using self-assessment and have your tax calculated by HMRC. Once you’ve done this, you can ask for an SA302 form, which outlines your total income and tax paid. Lenders will then base their mortgage calculations on this information.

If you’re in business with someone else, mortgage lenders will look at your individual share of the profits (if you’re using accounts) or your individual share of total income received (if you are using SA302s).

Limited company
If you form a limited company, you’ll be keeping your business accounts separate from your personal ones. As a director, you’ll usually pay yourself a basic salary and additional dividend payments during the course of the year, which will both be taken into account by lenders when you apply for a mortgage.

If you choose to retain profits in the business rather than drawing them out, this can create difficulties, as some lenders don’t factor retained profits into their calculation.

If you want more information, that is specific to your circumstances, give us a call to arrange a no obligation chat.

We make it easy for you

Get started online or speak to our team

Complete our form or give us a call. Everyone’s needs are different so we’ll gather all he info we need to help make your application as smooth as possible.

We search the market to find the right deal for you

We have access to hundreds of deals. Our team will search the market and give you options that best suit your needs and save you money.

We support you through the whole process

Buying a property is rarely straightforward, so our expert team will be there to guide you all the way through the process from offer to completion.

Need an agreement in principle?

We’ll get you house hunting within the hour…

How much can I borrow

Our mortgage borrowing calculator will provide you with an approximation of how much you’re likely to be able to borrow. Mortgage affordability is subject to lots of different things, such as your credit history, monthly outgoings and deposit, and it can also vary from lender to lender.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £549.

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