Self-employed Mortgages
Working for yourself shouldn’t be a barrier to buying the house of your dreams. Our team can take the time and stress out of securing the right mortgage.
Finding the right lender that fits your unique circumstances is key when you’re self-employed. We have years of experience working with lenders who specialise in borrowers just like you who work for themselves.
How we can help
It’s our job to help make the mortgage process seem less daunting when you work for yourself. We take on all the work so you can focus on running your business and not chasing lenders for information.
We’ll start by asking about you and your business. Once we know more about your house-buying plans, we can talk through all your options and support you in making your decision. Then you can leave it to us to submit the application on your behalf.
“Without Clara, we would never have been given a mortgage big enough to afford the house we wanted.” (Jun ’23)
Frequently asked questions
Can I get a mortgage with only a year of accounts?
Most lenders will want to see evidence that you’ve been self-employed for at least 2 years. If you’ve only been self-employed for a year then don’t be disheartened – it can still be possible to get a mortgage.
Along with many other factors, it will depend on your individual circumstances, the details of your first year in business, and your situation before you became self-employed.
Get in touch and we can chat through your options.
What proof of earnings do I need if I want a mortgage?
For all mortgages, lenders want proof that you can afford monthly repayments. This includes things like bank statements and evidence that you have the deposit money. When you’re self-employed, lenders also want to see other documents proving your income. Different lenders and different self-employment set ups will impact what is needed but you will often need a couple of years of certified accounts and/or a tax year overview and tax calculation (or SA302 form) from the last 2 years, depending on how you are set up etc.
How much can I borrow if I’m self-employed?
As a general rule of thumb, lenders lend more money when their risk is lower. If you are self-employed and able to prove a stable income, a good credit history and you have a decent deposit, then you might be able to borrow the same as someone who is employed.
However, every circumstance is different, and every lender has different criteria and ways of looking at self-employed income. That’s why it’s important to talk to a mortgage broker who can take the frustration and time out of comparing mortgages and speaking to lenders.
Do I need extra insurance if I’m self-employed?
Other than buildings insurance lenders won’t stipulate any particular type of personal insurance before you borrow.
However, if you are committing to mortgage payments when you are self-employed, it might be worth considering income protection. This will give you the peace of mind that your mortgage payments will still be covered even if you’re unable to work due to illness or injury.
You can find out more about this on our income protection page, or just ask us for more information when we discuss your mortgage.
Do I need an offset mortgage?
This is worth considering if you’re self-employed and need to build up reserves to pay the tax man. If you’re not self-employed, it’s also a great option if you like to keep a nest egg but don’t want to invest it – you can use it to reduce the interest you pay on your mortgage. As with all mortgage products, there are pros and cons and they won’t be suitable for everyone, but they are among the range of products our mortgage brokers will consider for you.
You may have many more questions about getting a mortgage when you’re self-employed mortgages that aren’t covered here. If you want to speak to a friendly and knowledgeable mortgage broker in more detail, then get in touch to arrange a no obligation call to discuss your individual circumstances.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Get in touch
We’re here to help with any questions you might have about our services. Send us an email, pick up the phone or fill out our contact form. We look forward to hearing from you.
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