Self Employed or a Contractor?
Are you either of the above? Whether you are a freelancer, contractor or operating as a sole trader, there is still a mortgage opportunity. In fact there are plenty. Don’t let working for yourself put you off of applying for a mortgage deal in 2020. Things have moved on significantly over the years. You don’t have to jump through hoops in order to find a lender that will offer you a great deal. Being self employed certainly doesn’t mean that you are at the bottom of the pile and have to accept any deal on offer and be grateful for it either.
Sure, there are rules that apply. All lenders will want to see proof in income of course, but this is the same for an employed person or couple looking for a mortgage deal.
Your Earnings Meet Your Housing Expectations
Providing you are earning enough to cover your mortgage payments comfortably and there are no mitigating factors, getting a self-employed mortgage shouldn’t be an issue. A growing proportion of people in the UK work for themselves in one capacity or another. It allows flexibility when it comes to the working week, you set your own rules and hours. In an ever changing landscape, people are looking to do something different. Especially in these challenging times. Some have seen it as a chance to finally do it themselves.
Then they want to up-grade, remortgage or buy their first home and they suddenly panic. Banks don’t like the self-employed is the misguided belief.
The first step is to gather your information together. You will need at least two years worth of accounts, some banks may want more.
It’s your net income that will be used not your gross income. A lender will generally take an average over a three year period in order to calculate your loan amount.
Chat to a broker, or have a really good read online. Do you earn enough and can you prove it? That’s the first step. After that it’s much like any other mortgage application.