If you are self employed, a contractor or freelancer or you perhaps you own your own small business then we can help you get a mortgage. Lending Expert compare live mortgage rates as of April, 2024.
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Getting a mortgage when you are self-employed can be a difficult task but it is not impossible! Lending Expert can guide you to the best broker for your self-employed mortgage if you are eligible.
Technically, there is no such thing as a Self-Employed Mortgage, you will be applying for the same mortgage as those who have contracted jobs with companies. That is what makes getting this mortgage more difficult.
Without a regular payslip or a full time contract it can be difficult to convince your lenders to give you a mortgage, people who are self-employed can often have fluctuating incomes and this means that lenders do not know whether to trust you for repayments.
However, with some financial foresight and a good deposit, it is possible to receive a mortgage if you are self-employed. You may have to go the extra length in order to prove you can keep up repayments but with thoughtful planning and Lending Expert, this is easy.
The best way to prove your credentials to the lender is to show at least two years of accounts signed off by a certified or chartered accountant, the more years that you can show the better for your application!
Moreover, if you can show a healthy and stable profit over the past few years, lenders will be more likely to accept your application as lenders will look at average profit to assess your eligibility for a self-employed mortgage.
Before taking out a self-employed mortgage, make sure to share the objectives with your mortgage advisor so that you can ensure that the mortgage suitably meets your requirements.
Lending Expert is a mortgage broker and can compare over 1,000 self-employed mortgage deals across the UK. Whilst high street banks will typically offer self-employed mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history
Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best self-employed mortgage according to your requirements.
If you are self-employed then getting a mortgage can sometimes be challenging. However, with good credit and organised accounts there are plenty of mortgage providers that will give a mortgage to those who are self-employed.
If you are self-employed then you will be asked to provide at least two years of accounts in contrast to the most recent three payslips you are asked for if you are employed.
When lenders can see your organised and healthy finances then self-employed people are eligible for almost all of the same mortgages as everyone else. It can be more difficult if you have bad credit and not all of the necessary evidence but do not be deterred, Lending Expert can still find you the best mortgage for your requirements.
The cost of a mortgage when you are self-employed relies on a number of factors. Most importantly is the type of mortgage that you are applying for.
Read Lending Expert’s pages on Fixed Rate Mortgages, Current Account Mortgages and many more to find the best type of mortgage for you.
However, the mortgage will cost more if you have bad credit and cannot produce at least two years of accounts that show a healthy and stable income from your business. Make sure to read the guidelines carefully before you accept a mortgage.
Lenders will consider that you are self-employed if you own more than 20% to 25% of the business that is the source of your main income.
Freelancers who are hired to work for various companies and independent contractors are also seen as self-employed.
You can be a sole trader or company director and still be self-employed.
To apply for a mortgage when you are self-employed, you will need to provide proof of your identity, your income and your expenditure, with examples of these detailed below. Lenders may ask for more documents than this, but if you can provide good proof of all of these documents then you sit in good stead to be eligible for a mortgage when you are self-employed.
To prove your identity you will need to show:
To prove your income you can show:
And to prove your expenditure:
We proudly offer self-employed mortgages across the entire UK, Scotland and Wales including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.
The typical deposit required for a self-employed mortgage is 25% of the property value, with some lenders requiring around 40% to 45%.
Larger deposits will usually result in paying lower rates overall, since you have paid off and own more of the property. Putting down a higher deposit may also be a requirement for those individuals with limited financial records or weaker credit ratings.
There are a few simple factors that can help improve your chances of getting a mortgage if you are self-employed:
Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.
Contact us today to speak to an expert and start comparing fixed rate mortgages to find the best option for you.
Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals available and is in the perfect position to help you get approved and get the best rates.
Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation.
Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!
If you're self employed then proving your income can be more challenging, but isn't impossible. Whether you are a sole trader, a company director or a contractor, the type of proof you can provide my differ.
The most popular proof of income that mortgage lenders accept would be SA302 documents that are now available as a print off from your accountant. An SA302 document will show your income from the previous financial year. You may also be able to demonstrate income by means of your company or business accounts, or via a letter or statements from your accountant.
Each lender will also have different rules about how long you must have been in business/self employed to qualify for their mortgage. Some lenders will accept applicants with only 1 year of accounts, while others will require a longer duration of 2 years accounts for example.
As a director you can provide the lender with payslips and SA302 documents that shows your income and dividend payments.
Yes. Dividend income is allowed as part of the income calculation.
Generally speaking mortgage lenders will not accept rental income as part of the income calculation. If you are a self-employed landlord, some lenders will take net income into account if you can present sufficient evidence and the property can be shown to be self-funding; this will be after all management and finance costs are deducted.
Yes and No. This depends on the lender and how much they wish to see and investigate further. They may be happy with your last 2 years SA302 documents and take an average income calculation from that. They then may wish to back this up by looking into the LTD company to check the income and expenses there to also verify a solvent income stream. This is where the help from a good broker can help ensure you have everything in order that the lender will need to see.
If you have a history of bad credit such as missed payments, CCJ’s or even bankruptcy then you may find it more difficult to get a mortgage. In this instance we would advise you to speak with a mortgage expert who will be able to assess your needs and credit worthiness.
Our mortgage brokers have an in-depth knowledge of the mortgage market and understand which mortgage lenders offer mortgages to people with a bad credit history.
It is also important to consider that if you require a mortgage with a bad credit history or low credit score then you should expect to pay a higher rate of interest for your mortgage. This will take careful consideration to ensure you can meet the repayments within your household budget.
No. The days of self certification mortgages are over. The lender will need to see documentary proof of your income.
Compare mortgages for self employed and get the best deals today with Lending Expert.