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.
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.
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.
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.
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.
Our mortgage advisers can advise as to which lenders are best suited to your circumstances and assist you in obtaining your self-employed mortgage.