How To Get A Mortgage When You’re Self-Employed

Getting a mortgage when you’re self-employed may require a few extra hoops to jump through, but it’s far from impossible.

The good news is that there are mortgages on the market readily available for the self-employed.

Here are some things you can do to find the right mortgage for you.

Proving your income

Like anyone else trying to get a mortgage, you’ll probably have to prove your income. However, while people in employment can usually just show a payslip, it’ll be different for you.

The two main documents mortgage providers will want you to provide are your self-assessment tax return and your tax year overview.

Before applying for any mortgage loans, it’s best to have this information ready, dating back as far as possible. If you can only get one year’s worth of records, however, don’t worry – you won’t necessarily be automatically declared ineligible to get your mortgage.

Some lenders may ask for further proof of income, such as details on future contracts you may have lined up, to provide some certainty that you’ll be able to afford future payments.

Improve your credit score

When applying for any sort of loan, your credit score will be under scrutiny. So, naturally, the higher your credit score, the more likely you’ll be accepted for a mortgage.

You should therefore consider ways to improve your credit score before applying, including:

  • using and paying off any credit cards on time
  • paying bills via direct debit
  • avoiding using overdrafts.

Pay a larger deposit

Any mortgage lender will look favourably on you if you can put a larger deposit down for the property. The more you pay upfront, the less you’ll have to borrow.

A lender will also consider any savings you have as it’ll guarantee that you’ll have a reserve of money to fall back on should any work you’re due to carry out get cancelled.

As long as your savings are growing faster than house prices, every month you save will make your mortgage cheaper in the long run.

Hire an accountant

Having an accountant by your side throughout your mortgage hunt will prove to be a great benefit. Not only will they be able to keep your finances in check, but they’ll also have all the necessary paperwork prepared for your application.

Not only do many lenders look favourably on any application where the lender’s income has been officially signed off by an accountant, but the assurance offered by a financial professional overseeing your finances may also help secure you a good mortgage.

Our accounts specialists will help you keep tight control of your finances and increase your chances of finding the best mortgage for you.

We’re here to help

Although it may seem challenging, finding a mortgage when you’re self-employed needn’t be a struggle.

We’ve helped countless clients find the best ways to increase their chances of finding a mortgage, and we can help you too.

Contact our team today to discuss your self-employed mortgage.

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