So your Self Employed and everyone has told you that you won’t be able to get a mortgage.

The truth is that being self-employed does not make mortgage lenders any less likely to approve your application than if you were employed – you just have to be a little bit more organised in your approach to managing your finances and preparing your application.

Being self-employed can bring many rewards in life but not when it comes to buying a home, and the confusion surrounding self-employed mortgages effects thousands of business owners just like you every year.

While there will be additional obstacles to navigate along the path to mortgage success, it is usually still possible to reach the dream destination of home ownership. Here’s all you need to know.

SPEAK TO AN EXPERT – Our Self Employed Experts are here to help.

Do All Lenders Offer Self Employed Mortgages?

The good news for you is that most banks and building societies will allow self-employed workers and business owners to borrow money. Yes, the path may be a bit trickier to reach your ultimate goal. This means that, despite the perceived lack of options, you should have no problems finding a lender – as long as you meet the criteria.

Remember, though, that all lenders have their own policy and underwriting criteria. So, just because one bank doesn’t offer you a self-employed mortgage, it doesn’t mean that another one won’t.

What Extra Hurdles Will I Face During The Self-employed Mortgage Application?

Lenders need to verify your earnings. This is easy when applying for a mortgage when you employed but can be a little more difficult when you’re self-employed. Most lenders want to see confirmation of your earnings from the last two years. There is still a handful of lenders who will work off one year’s accounts.

The best way to prove your earning to a lender is by way of your latest two years Tax Calculations and corresponding Tax Year Overviews. Also, lenders will want to be satisfied that the earnings are able to continue. Contracts for future employment – as well as similar documents – can work wonders in securing your mortgage.

How Much Can I Borrow On A Self-Employed Mortgage?

Lenders have affordability calculations and as a rule of thumb most will lend up to a maximum 5 times your annual earnings. Although many set their limits between 4 or 4.5 times the earnings depending on your circumstances.

Your earnings are normally calculated by taking the average from the last 2 years net profit figure, as per the figures on your Tax Calculation and Tax Year overview forms. If you are applying for a joint mortgage with your spouse or partner then their earnings can be added to the multiplier

We Have Specialist Self Employed Mortgage Advisors.

We have a team of specialist self-employed mortgage advisers. Even if you have an understanding of mortgage rates and know how to prove your earnings its best to talk to an expert. We can help you find the best rates from the best lenders with the lowest fees while also supporting you through the preparation and submission of the application.

We want to help you find the very best self-employed mortgage to fit your circumstances. If nothing else, it should provide you with peace of mind knowing and expert agrees with you.

Be Prepared

Gathering your financial records is a great starting point. Also building a strong credit score and a larger deposit both help. Those two features will open up a far greater amount of Mortgage Lenders available to you.

Any questions about Self Employed Mortgages? Why not call us on 0131 463 5678 or use the quick contact form below. We look forward to hearing from you soon.