Mortgages for the self employed

Mortgages for people who are self employed are fairly common and could be readily available if you know which lenders to approach and what documentation they will require.

  • Access to the whole mortgage market
  • Self employed mortgage advice
  • Self employed remortgages
  • All circumstances considered

 

If you are self employed and want to apply for a new mortgage or remortgage we’d be happy to hear from you.

Been turned down for a self employed mortgage?

There are a number of key differences from a mortgage for someone who’s employed and with mortgage applications for self employed people. An employed person may only have to supply payslips or a P60, which aren’t always available for business owners.

Different lenders have different lending criteria and going into a single bank or building society only to find out they don’t have the right products to fit your needs is not uncommon. If you’re self employed you would probably be best speaking to an independent whole of market broker to maximise the chances of finding the right mortgage or remortgage to fit your needs.

Below are a few reasons why a self employed person could be refused:

  • Not got 3 full years audited accounts
  • Bank will not lend enough to fund the purchase or refinance
  • Credit score
  • The lender may not be happy with how you receive your income

Whilst not exhaustive, the points above may sound familiar.

If you are a director of a Limited company, depending on your share of the company, a lender may accept wage slips or they may require an accountant’s reference or want to see the accounts for the past 1, 2 or 3 years.

For sole traders, if you have a qualified accountant, the lender could request an accountant’s reference or want to see the accounts. If you don’t have an accountant, a lender may ask to see your SA302’s which can be requested from the inland revenue and shows your earnings for tax purposes.

Contractors or people with unusual pay structures may be asked for a the same items, or a number of different items that a sole trader may be asked for. They could be asked for a number of separate items, which individually wouldn’t be acceptable but collectively, could provide suitable proof of income.

The mortgage products available for self employed people are numerous and each application is treated on its own merits – If you have questions or want to apply for a self employed mortgage or remortgage we could help.

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