How to Secure a Mortgage if You Are Self-Employed
Securing a mortgage when you’re self-employed can feel like a daunting task. Unlike traditional employees who can present payslips as proof of income, self-employed individuals often have to jump through extra hoops to prove their financial stability. However, with the right preparation and expert guidance, getting a mortgage as a self-employed borrower is absolutely possible. Here’s what you need to know.
Understand What Lenders Look For
Lenders want to be sure you have a stable and reliable income to afford your mortgage repayments. If you’re self-employed, they typically assess:
- Your income over the last two to three years (though some lenders may accept just one year)
- Your tax returns (SA302s) and tax year overviews
- Your business accounts, ideally signed off by a chartered accountant
- Your credit history and financial commitments
Get Your Financial Documents in Order
Having the right paperwork ready will make the application process smoother. Ensure you have:
- At least two years of self-assessment tax returns (some lenders may accept just one year)
- Bank statements (personal and business)
- Company accounts (If applicable)
- A record of regular work or contracts to show future income stability
Improve Your Credit Score
Your credit score plays a crucial role in your mortgage application. To boost your chances of approval:
- Make payments on time
- Avoid taking out new credit just before applying
- Check your credit report for any errors and correct them
Save for a Larger Deposit
Self-employed borrowers could benefit from making a larger deposit, as it offers several advantages. A bigger deposit reduces the lender’s risk, which can help improve the chances of approval. Additionally, it may give borrowers access to better mortgage rates, making it a smart financial move in securing a more favourable deal.
Work with a Mortgage Broker Specialising in Self-Employed Mortgages
Navigating the mortgage process alone can be challenging, especially when self-employed. This is where at Complete Mortgage Advice we can help. Our expert mortgage advisors understand the complexities of self-employed income and work closely with lenders who are more flexible with self-employed applicants. We can:
- Help you prepare your financial documents
- Match you with lenders who understand self-employment income
- Improve your chances of approval with tailored advice
- Find the most suitable mortgage deal for your circumstances
Consider Specialist Lenders
Not all lenders have the same criteria. Some high street banks may be stricter, while specialist lenders cater specifically to self-employed applicants. A mortgage broker can connect you with these lenders to improve your chances.
Plan Ahead
If you’re thinking about buying a home in the future, start planning now. Keeping clear records, filing tax returns on time, and maintaining financial stability will help when the time comes to apply.
Final Thoughts
Getting a mortgage when you’re self-employed may require extra steps, but it’s certainly achievable with the right approach. At Complete Mortgage Advice, we specialise in helping self-employed professionals secure the right mortgage deal. Whether you’re a sole trader, contractor, or business owner, we can guide you every step of the way.
Get in touch today to see how we can help make your homeownership dream a reality! 📩💜
Tom Boulden
Mortgage Advisor
📞 01752 905011
📧 info@completemortgageadvice.co.uk
🌐 www.completemortgageadvice.co.uk
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
