Created by: Dave Harland | 20 November 2018

How to get a mortgage if you’re self-employed

Getting a mortgage if you’re self-employed may be harder but it certainly isn’t impossible. Ultimately, you need to prove that you have a reliable income and there are loads of ways you can do this – you may just need to try a bit harder. We’ve rounded up the best advice on how to secure a mortgage if you’re self-employed.

A brief history

Years ago, if you were self-employed and looking for a mortgage, you would use a self-certification mortgage. These were designed for self-employed people to self-certify how much they earnt in a year. But they were scrapped in 2014.

Now, if you’re self-employed and looking for a mortgage, you have to apply for the same mortgage products available to everyone else.

How do you get a self-employed mortgage?

If you’re looking for a mortgage and are self-employed, you’ll need to meet the mortgage provider’s affordability tests, just like any other person looking for a mortgage.

As you don’t have an employer to confirm your wage, you must provide a bit more evidence, compared to other people. Usually, you’ll be asked to provide a minimum of two years’ worth of business accounts.  

If you’re unable to provide business accounts dating back two years, it may be more difficult to prove that you’re able to repay a mortgage. But, it’s not impossible. Instead, you’ll need evidence that you’ve got a steady stream of work coming in.

A good credit history and large deposit are also likely to improve your chances of securing a mortgage if you’re self-employed.

Will the mortgage rates be higher if I’m self-employed?

As long as you can provide enough information about your income, you should be accepted for the same mortgage deals as a person with a permanent role.  

Mortgage rates are more likely to depend on your deposit rather than whether you’re self-employed or not. The bigger the deposit, the better the rate you are likely to be given.

How do I find the best self-employed mortgage deal?

The easiest way to find the best deals is to compare. A mortgage advisor may also be able to find better deals and could improve your chances of securing a self-employed mortgage.

You don’t have to use a mortgage broker though. If you’ve been self-employed for a number of years and have healthy accounts, there’s nothing stopping you for applying for your preferred deal.

Improve your chances of getting accepted

•    Keep your business accounts and paperwork up to date.

•    Consider using an accountant to organise your taxes and accounts.

•    Make sure you complete a self-assessment form to prove your income.

What you need to get a mortgage if you’re self-employed

•    Two years’ worth of accounts

•    Proof of upcoming work

•    Evidence of regular work

•    A healthy deposit

•    A good credit history

The main thing to remember is that while it may be more difficult to get a mortgage if you’re self-employed, it certainly isn’t impossible.

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