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

YESSS! We have heard quite a lot “but I’m self employed” it doesn’t matter as long you are a UK tax payer we can help!

Is it harder to get a mortgage if you're self-employed?

If you’re self-employed, it can be more of a challenge to get a mortgage because you’ll need to prove you have a reliable income. But getting a mortgage when self-employed is certainly not impossible.

Some lenders will require an accountants certificate but the majority of lenders will ask for most recent up to date SA302s and Tax Year Overviews. You may not have heard of these documents but we can help you get everything in line so that you have all of ducks in row before applying for your new mortgage.

What are self-certification mortgages and do they still exist?

“Self-certification” or “self-cert” mortgages were specifically designed for the self- employed and allowed them to self-certify how much they earnt in a given year, with no need to provide evidence.

However, self-cert mortgages were banned completely in 2014 due to concerns borrowers were being accepted for mortgages they couldn’t afford.

This means those who are self-employed now need to apply for a mortgage in the same way as everyone else.

What counts as self-employed?

Lenders will view you as self-employed if you own more than 20% to 25% of a business, from which you earn your main income.

You could be a sole trader, company director, or contractor, regardless of whether it’s a limited company. You are still an owner.

How do you get a self-employed mortgage?

If you’re self-employed and looking for a mortgage, you will, in theory, have access to the same range of mortgages as everybody else and you’ll need to pass the lender’s affordability tests in the same way as any other borrower.

What will I need to provide for a self-employed mortgage?

To prove your income when you apply for a self-employed mortgage, you will need to provide:

  •  Two or more years’ certified accounts or accountants certificate
  • SA302 forms or a tax year overview (from HMRC) for the past two years
  • Proof of income paid into your bank

Do self-employed people have to pay higher mortgage rates?

Short answer.. NO!

As long as you’re able to supply enough information about your income, you should qualify for the same mortgage deal as someone with a comparable salary in a permanent, full-time job.

The mortgage rate you get is much more likely to depend on the size of your deposit, as well as your credit rating.

How to boost your mortgage chances

There are a number of steps you can take to increase your chances of being accepted for a mortgage when self-employed, such as:

  • Save as much as you can for a deposit
  • Check your credit rating
  • Get on the electoral roll
  • Avoid buying certain properties such as flats above commercial premises or old or unusual buildings as lenders are less willing to lend on these
  • Speak to a mortgage broker (US)
High-Quality Mortgage Advice

Book a Free Initial Consultation

If you are looking for a mortgage, book a free consultation with one of our advisers.

We offer advice on a wide range of mortgage products and can help you get the right deal to suit your individual needs.

The Financial Conduct Authority do not regulate buy to let mortgages.

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