One of the common misconceptions about the mortgage market is that it is almost impossible to obtain a mortgage for someone who is self-employed. This isn’t true, and with the right advice and guidance, a self-employed applicant has just as much chance as anyone to successfully acquire a mortgage.
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In principle, self-employed borrowers have access to the same series of mortgage products as everybody else. The key difference is the way in which underwriters gain comfort in a self-employed applicant's affordability.
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It is typical that at least 2 years of company accounts will be required. This includes SA302’s or tax returns which you will need to present to the lenders. If you work as a contractor, for example, you may also be required to supply evidence of future work that has been scheduled to prove that your current income will be upheld.
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Things you need that can help you get a mortgage:
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At least 2 years (sometimes 3 depending on the lender) of accounts prepared by an accountant.
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SA302 – self-assessment form which verifies how much income you declared to HMRC and the amount of tax you paid on it.
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Proof of your deposit.
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Bank statements.
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Details of any debt repayments and additional outgoings such as childcare and pension contributions.
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If you don’t have two or three years’ worth of accounts, then don’t despair as there are certain lenders who may still be willing to offer you a mortgage. This is particularly suitable if you have only just recently left full-time employment and are continuing to work in the same industry or maybe you are able to prove that you have a sufficient amount of work coming in.
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Our mortgage advisers can advise as to which lenders are best suited to your circumstances and assist you in obtaining your self-employed mortgage.