Self Employed Mortgages

Changes in the mortgage market and in mortgage regulation in recent years have resulted in lenders becoming more stringent in their approach to how they underwrite mortgage applications, and taking a much more cautious and risk-averse attitude when assessing affordability. Many mainstream lenders on the high street will only consider applicants that fall within their quite narrow criteria, and many people with irregular incomes, unconventional ways of paying themselves or blemishes on their credit record have found themselves declined.

Despite the usual misconceptions, your chances of getting a mortgage if you’re self employed are just as good as an employed person.

The only difference is that you will need to provide lenders with additional proof of your income. As a self employed individual you do not have an employer to vouch for your wages, therefore mortgage lenders will need to see that you will be able to afford your monthly repayments. To do this, you will need to provide some extra documentation, depending on the type of business you own.

When getting a Self-Employed mortgage:

Lenders will view you as self-employed if you own more than 20% to 25% of a business, from which you earn your main income. You could be a sole trader, company director, or contractor.
If you are a sole trader or company director, most lenders will generally want to see at least 2 years of accounts and/or 2 years’ tax calculations (your SA302s) and tax summaries.
If you are a contractor, you will need to show your work history over the past 12 months. A contract is preferable, but you may be able to use your recent accounts or tax returns if you don’t have one.

At Apex Financial Consultants we specialise in helping our self-employed clients obtain the mortgages they need. The mortgage market contains a wide range of lenders – from high street banks and building societies to smaller, specialist lending companies you won’t find commonly advertised – and we have a wealth of experience and knowledge of how they all make their assessments of your mortgage application.

Thanks to our insights and advice as a specialist self-employed mortgage provider, you’ll be able to find exactly the right self-employed mortgage you need to meet your specific circumstances and requirements.