Self-Employed Mortgages - Fast Expert Help and Same Day Decisions

Is it harder to get a mortgage if you are Self-Employed?

The way lenders assess affordability and income for Self-Employed individuals is slightly different. Traditionally, an employed person gets payslips, and Self-Employed people obviously don’t, because they don’t have an employer.

Self-Employed people still need to prove their income, but differently. It shouldn’t be any harder for a Self-Employed person to obtain a mortgage than for an employed person, you’re not penalised for being Self-Employed. It’s just that some of the documentation that you need to provide is different, and some lenders will have restrictions on how long you’ve been Self-Employed before they can lend to you.

What if I only have one year’s accounts?

Yes, there are quite a few lenders who would look at an applicant with only one year’s accounts. If you’ve got one year’s accounts then, subject to meeting the other lending criteria, they will certainly be willing to take an application from you.

Are Self-cert mortgages still available?

No, those are not available anymore because of what happened in the crisis back in 2008 and they have been off the market for a number of years now.

Can you get a joint mortgage if one person is Self-Employed?

Absolutely, the eligibility would still be the same if one person is Self-Employed and the other employed, or even unemployed, if the other applicant is Self-Employed. There are no current restrictions on that.

Is Buy to Let available for the Self-Employed?

Yes, it’s fine for individuals who are Self-Employed to take out a Buy to Let mortgage. Buy to Let mortgages have other criteria to pass, but no lenders that I can think of would say no just purely on the fact that you’re Self-Employed.

What is the difference between someone who is Self-Employed and a Limited Company Director?

Self-Employed people can be set up as a Limited Company or a Sole Trader. A Sole

Trader is a person who’s working on their own, so they are treated differently to Limited Companies.

If you’re a Limited Company Director, you can take dividends from the company and if you own more than 25%, you would be treated as Self-Employed.They would still need to provide tax returns, but how they’ve registered themselves as Self-Employed is different.

How does Remortgaging work for the Self-Employed?

This is generally the same, just the income verification would be different. They would just ask for the tax returns for the individual in the same way that they would with a purchase. Again, every lender would be different with regards to how many years tax returns they would need, but it’s treated much the same as a purchase.

How much can a Self-Employed person borrow?

That’s just the same as an employed individual. The lenders will assess your income based on a tax year overview and they will have their own affordability algorithms for that.

What are the key documents you will need to supply as a Self-Employed applicant?

The tax year overviews are the standard documents lenders ask for from Self-Employed individuals. They may also ask if you’ve got a limited company and ask for the company’s accounts. It’s typically two years accounts and tax overviews, but there are lenders who will work off a one year if you have potentially only been Self-Employed for the year or you can only demonstrate that you’ve got one year’s tax returns.

If you’ve got any specific questions then just reach out to one of our advisers, who will always be more than happy to give you specific hints and tips if you are going to go for an application. I’d always suggest making sure tax returns and your self assessments are up to date, prior to doing any applications.

Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 2%, but a typical fee of £495 is payable on offer.