Self Employed Mortgages
In previous years, before the credit crunch, those who were self-employed and looking to buy a property could take out a self-certification mortgage (a type of mortgage that could be obtained without providing proof of income).
In fact, in practice, if you are self-employed you have access to the same mortgage deals as everyone else. The key is proving your income to reassure the lender that you will consistently be able to meet your mortgage payments.
Typically, lenders will require two years’ worth of accounts (although you still may secure a mortgage offer without this), tax returns and proof of any other income and outgoings. If you are a contractor, you may also need evidence of future earnings.
At Mortgage Advice Brokerage we understand what lenders are looking for, whether you’re a Director of your own company, in a Partnership or a sole trader. We will talk you through the options available to you and look at mortgage lenders suitable for your individual circumstances. We will look at both fixed and variable rate mortgages including tracker mortgages to find you the best rate. We can also advise you of what to watch out for, such as minimising your earnings for tax purposes, but which could work against you when applying for a mortgage.
If you are self-employed, it’s essential that you get expert advice because your application will require extra care and attention to ensure that it is approved.