Mortgages for self employed
If you are a self-employed contractor or small business owner and require a mortgage then our mortgage experts can really help. Our mortgage brokers understand the different lender requirements between those who are employed and those who are self employed or who own their own small business.
Our experts are able to search the whole UK mortgage market and have a broad knowledge of all the lenders who are more willing to provide a mortgage to self employed people.
Why is it more difficult to get a mortgage if you are self employed?
This really comes down to risk and how “risky” the mortgage lender perceives you to be. Banks and building society’s generally favor employed people as they are deemed to have a more secure financial future, regular salary and therefore more likely to be able to maintain mortgage repayments.
Self employed people on the other hand may have an irregular income pattern and a higher chance of business failure or periods of time whereby no income is generated at all.
Lenders don’t like to take on too much risk
Banks and lenders don’t like risk therefore the application and income requirements for a self employed mortgage will be higher when compare to a conventional mortgage applicant who is employed and has a steady and provable salary.
What income proof will I need to show the mortgage lender?
Applying for a mortgage when self employed takes much more planning and thought to ensure you’re able to borrow the amount you require and achieve a good deal.
Here is some of the information you’ll need to show the lender:
- Accounts for at least 3 years.
- A SA302 from HMRC – be prepared as this may take several weeks to get
- Proof of ID, such as a driving license, passport and a recent utility bill etc.
Can you get a self employed mortgage with bad credit?
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.
Where can I get further mortgage advice?
A quick and easy search here on the website will display all the lenders and self employed mortgage products for all the UK mortgage market place. This allows you to compare mortgage deals and view mortgage rates side-by-side for easy comparison.
Alternatively speak to a mortgage broker found here on the website for free and impartial mortgage advice, help and guidance.
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