Mortgages For Self Employed People
If you are self employed or you own your own small business then we can help you get a mortgage. View and compare the mortgages rates and deals on offer or simply call us to speak to a mortgage expert.
What proof of income will the lender require?
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 company director what do I need to provide the lender?
As a director you can provide the lender with payslips and SA302 documents that shows your income and dividend payments.
Do dividend payments count towards my income?
Yes. Dividend income is allowed as part of the income calculation.
Can I use BTL property rental income on as part of my income?
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.
Will the lender want to see my LTD company accounts?
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.
Can I get a mortgage being self employed 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.
Can I self certify my self-employed income?
No. The days of self certification mortgages are over. The lender will need to see documentary proof of your income.