Getting a mortgage when you're self-employed
If you’re self-employed and looking for a new mortgage deal, you may be worried that your employment status could limit your borrowing options. But with the bank rate at an all-time low and more lenders looking at how they cater for the self-employed, you may have more choice than you think.
Mortgages for the self-employed is gradually improving and there is a growing appetite to lend to this previously under-served proportion of the workforce. Initially driven by specialist providers, over recent months there have been more lenders looking at improving the way they look at borrowers who are self-employed.
Going through a mortgage adviser will give you access to a wider range of products but there are some other things to consider.
For established businesses, such as those who have a two year proven track record there should be no issue at all, however, those who have moved to this basis more recently may still have a handful of choices available, providing they have previous experience in their chosen field.
Lenders find it difficult to assess people who are self-employed so keeping comprehensive records will help to evidence your financial position. If you’re struggling to record a long history of your accounts then try to save as much deposit as you can to increase the rates that are available to you.
It’s also worth speaking to your accountant as the way they structure accounts for tax purposes will materially affect the size of the mortgage you can access. Ask them to plan for your remortgage or house purchase so that income and accounts reflect your true ability to afford the mortgage you want.
Mortgage Advice Bureau has access to mortgage products from more than 90 lenders. If you are looking to buy your first home, move house or remortgage, our advisers are on hand to offer our expert advice, whether it’s face-to-face or over the phone. Get in touch with us today to book an appointment.
Because we play by the book we want to tell you that…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.