You might have heard that securing a mortgage while self-employed is an uphill task. But here’s the good news: it’s absolutely possible! While it’s true that obtaining a mortgage can be challenging, this applies across the board, not just to the self-employed.
The key to finding the right mortgage for your unique situation lies in seeking advice from someone who truly understands your circumstances. That’s precisely what Mortgage Knight excels in.
Tips to Boost Your Chances of Securing a Self-Employed Mortgage:
Consult with specialists.
Save a substantial deposit.
Maintain a good credit history.
Demonstrate a consistent work record.
Understand how your business structure affects your application.
Understanding Your Mortgage Options as a Self-Employed Individual:
In the realm of self-employed mortgages, it’s crucial to comprehend the available options. Not all lenders are alike. While some might not favour self-employed clients, others are more accommodating. Additionally, requirements like the duration of accounts might differ, with some lenders asking for two years’ worth and others only requiring 12 months. Recognize that each self-employed individual’s circumstances vary, including payment structures.
That’s why it’s essential to have someone well-versed in all self-employed mortgage products, someone who takes the time to evaluate your unique working situation—someone with an expert understanding of contractor work structures.
At Mortgage Knight, we possess extensive industry experience. We’re here to help you find the best mortgage tailored to your circumstances. Moreover, we’ll assist in presenting your application in the best light for approval. We understand that payslips might not always accurately depict earnings.
Contact Us for Information About Self-Employed Mortgages:
If you’re self-employed and seeking a mortgage, don’t hesitate to reach out. Whether it’s your first mortgage or your self-employment began after your first home purchase, we’re here to assist. With a vast array of mortgage products and a history of helping numerous applicants, we’re ready to address your queries without any obligation.
Give us a call for a comprehensive quote that suits your contractor position and circumstances. Reach out or call us today to speak with one of our expert mortgage brokers. We’re here to help!
Find Your Ideal Mortgage with 85% Faster Approvals for Self-Employed
Self Employed Mortgage Broker
Taking your self-employed status into account, securing a mortgage might seem complex, but it’s completely achievable. Whether you are a freelancer, contractor, or a limited company director, the mortgage options available to you are the same as for salaried employees. The difference lies in how lenders assess your application and income fluctuations.
At Mortgage Knight, we simplify this process by guiding you through every step and connecting you with lenders who understand your unique financial situation. Let us handle the details and find a mortgage solution tailored to your self-employed lifestyle, saving you both time and effort.
How to Get a Mortgage When Self-Employed?
Getting a mortgage as a self-employed professional or freelancer is entirely feasible if you meet the lender’s criteria. While the process is similar to that of employed individuals, you’ll need to provide different types of documentation to prove your income.
You don’t necessarily need a specialist lender; a standard lender will review your financial information to determine your borrowing potential. For specific details on the required proof and documents, see the sections on Proving Income and Documentation Required.
Remember, if your circumstances involve non-standard construction mortgages, discussing this with your broker is crucial.
Types of Eligible Workers
From graphic designers to builders, many self-employed professionals qualify for mortgages.
Standard Lender Access
Use the same mortgage products and lenders as employed individuals.
Income Documentation
Provide detailed proof of income to support your application.
Discuss Special Cases
Address non-standard construction mortgages with your broker if needed.
Freelance Careers and Mortgages
Your job type doesn’t limit your mortgage options as long as you demonstrate affordability.
Documentation Required for Freelancers and Self-Employed Mortgages
Self-employed individuals need specific documents to apply for a mortgage. This includes 1 to 3 years of accounts, tax calculations, proof of ID and address, and recent bank statements if required. If your tax returns are lacking, you may need to supply additional documents like invoices or client contracts.
Accounts
Submit 1 – 3 years of detailed accounts
Tax Documents
Include tax calculations and summaries for the past 1 – 3 years.
ID and Address Proof
Provide valid identification and address verification.
Bank Statements
Recent statements may be needed.
Extra Documents
Invoices and contracts might be requested.
How Is Self-Employment Income Calculated for a Mortgage?
Income calculation for self-employed mortgages varies. Sole traders’ average net profit over two years is usually assessed, while limited company directors’ salaries and dividends are reviewed. Some lenders also consider future earnings forecasts.
Sole Traders
Average net profit from the last 1 years is used.
Limited Company Directors
Assess salary and dividends from 1 years.
Future Earnings
Some lenders use forecasts for additional insight.
Lender Methods
Different lenders have varied income calculation methods.
Documentation Effect
How you present income affects calculations.
Getting a Mortgage as a Self Employed with a Fluctuating Income
Freelancers or Self-employed with variable income can still get a mortgage. Lenders may be concerned about income stability, so showing that your income is steady or growing helps. While some may be cautious, others consider your average annual income for approval.
Income Stability
Prove steady or increasing income to improve chances.
Average Income
Some lenders review annual averages.
Lender Policies
Different lenders handle fluctuating income differently.
Affordability
Demonstrate your ability to make consistent payments.
Variable Income
It can impact lending decisions but isn’t a deal-breaker.
Options to Consider When Applying for a Mortgage as a Self-Employed Worker
Self-employed individuals should explore various mortgage options to find the best fit. Consider different interest rates, save a larger deposit, and evaluate mortgage configurations to boost approval chances and maximize borrowing potential.
Interest Rates
Compare fixed and variable rates.
Deposit Size
A bigger deposit can improve your application.
Mortgage Options
Explore different mortgage setups
Approval Factors
Understand factors affecting approval.
Max Borrowing
Different options can influence your maximum loan amount
Why Choose Mortgage Knight?
Mortgage Knight is your go-to for tailored mortgage solutions. We leverage our extensive lender network and deep industry knowledge to find the best rates and advice for your unique situation. Let us simplify the process and secure the perfect mortgage for you.
×
Hello!
Click one of our contacts below to chat on WhatsApp
