Self-employed mortgage

Can I get a mortgage if I’m Self-Employed?

Matthew Harris, Principal, explains how to get a self-employed mortgage.

Let's cut to the chase – your salary equates to mortgage lending levels. Your deposit does too. But what also affects your lending ability is your employment status and if this is self-employed it can 'sometimes' be harder to get a mortgage.

Why is it harder to get a mortgage if you're self-employed?
In the past, a self-employed person could self-certify income, which means telling the lender what their earnings were without having to prove it. However, since 2014 banks have tightened up their lending criteria to make sure everyone looking to buy a home can genuinely afford the mortgage they are agreeing to.

The impact of this on self-employed people is that it can sometimes be difficult to evidence how much you earn, particularly if you have only recently started your business or started working for yourself. It varies slightly across different lenders, but if you are self-employed and applying for a mortgage you are likely to be asked for some or all of following:

•Company accounts:
If you're a director of a limited company you'll be asked for 2 or 3 years of company accounts to evidence income

•Personal tax returns:
If you submit self-assessment tax returns, most likely you'll have to evidence signed contracts showing your day rate

•Contracts:
Again, you may be required to show signed contracts showing your day rate

•Employer:
If you are employed but receive other income you'll have to provide payslips and P60s

In all cases, you'll need to provide ID, proof of address, bank statements and evidence of your deposit.

What if I don't have these?
If you set up your business less than 2 years previously, the best option may be to wait. However, if you still want to proceed talk to us.
Here at 3Sixty Financial solutions we are used to dealing with difficult mortgages, we can help you explore the market and your options based on your individual circumstances.