Self Employed Mortgage

Getting a self employed mortgage deal can be a little more complicated than getting a mortgage if you are in a conventional salaried job role. Some mortgage lenders are cautious about offering mortgage deals to self employed people because they prefer to have the reassurance of a regular salary and an employment contract when deciding whether to offer a mortgage deal. If you are self employed and want to get a mortgage you may find that it is easier to approach a specialist mortgage broker who will take your individual circumstances into account.A mortgage lender will generally consider you to be self-employed if you own more than around a quarter of a business. This means that, as well as sole traders, people who are in partnerships or are company directors may also find themselves considered to be self employed for mortgage decision-making purposes.

Can I get a mortgage if I am self-employed?

In short – yes you can, but it may prove a little more difficult to find the mortgage deal that you want, especially now that self certification (‘self-cert’) mortgages are no longer available. You will need to prove your income and ability to make repayments, which can usually be done by supplying several years’ worth of business accounts. The farther back your business accounts stretch, the easier it is likely to be for you to get the self employed mortgage you want.A normal mortgage application will be assessed on the basis of your salary. However, mortgage applications for self employed people are assessed differently from traditional mortgage applications and will usually be considered on a case by case basis, based on your business accounts and your track record of income over time.

How are self employed mortgages assessed?

Self employed mortgages are usually assessed in a different manner from mortgage applications for people in salaried jobs. As a self employed mortgage applicant you will usually be assessed on a case by case basis, with your individual circumstances taken into account. This can greatly increase your chances of getting the mortgage deal that you want. Some ways in which you can help increase your chances of acceptance for a self employed mortgage could include:

• Aim for as high a deposit as you can afford – the higher the deposit you can put into a property, the less perceived risk to the lender.
• Check your most recent credit score – having an excellent credit history may help to reassure mortgage lenders that you have a stable financial history.
• Make sure your accounts are up to date – many mortgage lenders will want to see around 2 years’ worth of business accounts – and the further back you can go, the better. It’s also a good idea to have your most recent SA302 form, indicating your tax calculation for the most recent tax year.