Self-Employed Mortgages

Self Employed? Looking for a Mortgage?

Things have moved on somewhat. These days, being self employed does not mean that you can’t, or will find it difficult to get a great mortgage deal. Self employed mortgages are out there along with some great mortgage rates to boot.

Back in the day, you may have had to jump through hoops and then some if you wanted a mortgage broker to take you seriously.

There are plenty of deals out there, only self-employed business owners don’t realise it. In fact, according to a recent survey, around 35% of all self-employed people assume they’re not eligible or don’t earn enough, and 33% are finding the process and advice confusing and stressful. With those figures in mind, it’s safe to say that a lot of sole traders or business owners are ruling themselves out needlessly.

If you are one of those very people then here is a check-list that will help you to see if you are in fact eligible for a mortgage.

Speak to a broker Not all lenders have the same criteria – a broker such as The Mortgage Brain, will ensure you are matched with the most suitable lender
Check your credit Score make sure that there are no adverse entries against you
Check that you are on the electoral roll Check with your local council as this will definitely help with your score
Are your company accounts up to date? To achieve the most competitive rates you need to have a great record.
Try not to make the minimum payment on any credit cards that you may have It’s always best to make an effort to pay more than the bear minimum
Payday Loans? Payday loans are the worst if you are looking for a mortgage. Why? Because they paint a rather grim picture of your finances and will put most lenders off before you even get to looking at mortgage deals

I Am Clear With The Above – So Can I Get a Self employed Mortgage?

If you have checked the list and feel that there is nothing holding you back, then sure, you can get a mortgage. Lenders just want to know that you are good for the monthly payments and that your credit score is good. That’s not to say that all lenders are the same, they aren’t. Most however, have a similar check-list.

Lending money, where there is a good chance that you cannot pay off the loan, is not in their best interest. Even if you have the funds right now and your bank account is flush, it won’t help if you have a poor credit score. If you want to borrow a substantial amount of money for a property, then everything needs to be in order, but that really is the case for everyone, not just the self-employed.

Sole Trader Mortgages

You will need to make sure that you have a minimum of one year’s finalised accounts or an SA302 from HMRC that is less than 18 months old.

Contractors/freelancers Mortgages

You will need your current contract and, in some cases, the past 12 months paper-work. If this is not possible we can revert to using your personal tax returns or company accounts.

Limited companies

You will need to provide your latest year’s company accounts or personal tax return as a minimum. Some lenders may expect two or three years worth of accounts.

Get help with a self-employed mortgage deal – Contact us today.

Other guides you may like

Find the best mortgage deals, try out our calculator today

Mortgage calculator

It’s our first time to use The Mortgage Brain and they did not disappoint! What a brilliant team. They will guide you all throughout the process, which is very helpful to us as first-time buyers. They are quick and responsive to emails, transparent, and very efficient. Amazing customer service. Special thanks to Liam, Kaitlin and Chloe for making all things smooth for us.

The company and the staff are among the very few people I have dealt with whom I won't hesitate to recommend to family and friends. Darren and Laura are always ready to answer any questions and when they are not sure, always try to find it for you. They made my house buying journey so smooth and effortless and for that am grateful. I will recommend them at heart beat.

Really helpful throughout the process of buying our first home. We had no problems and all went smoothly. We also arranged some insurances through them but felt that this part has been less smooth for some of these and we are still waiting for some of these to be sorted. However, when contacting them about this we have always had fairly prompt replies.

Excellent service all round. Sarah listened to my requirement and matched it up perfectly to the proposal she sent across. The price was competitive and beat my existing provider, but still had all the existing benefits and more. She kept me informed at every step of the process and the end to end process from enquiry was speedy and efficient. I can't recommend them enough!