Are you self employed and thinking of getting a mortgage ?
Are you self employed and thinking of getting a mortgage ? Apparently, more and more people are becoming self employed. As a consequence, it seems there are are now almost five million registered self employed people in the UK.
Being Self Employed can offer many advantages. For example, there’s the ability to work your own hours. Or begin self employed might bring potential to seek out greater financial rewards. But, there’s always been a down side, or is there?
With self employment comes potential irregular income. Getting a mortgage as a self-employed professional can therefore be complicated. Not every self employed person will have 3 years accounts? In fact does every mortgage provider really need to see self employed accounts for a minimum of 3 years ? No….
Here’s a few ideas, facts and suggestions:
Proving your income
Yes, it’s true, some mortgage providers tend to make it more complicated to qualify your income for a mortgage if you’re self employed.
Generally, the longer the time you’ve been in a self-employed role, the better. But it doesn’t necessarily follow that you need to have been self employed for 3 years. There are a few mortgage lenders who are willing to provide a mortgage where you might have just one year of accounts.
Most mortgage providers prefer it if your accounts are prepared by a chartered or certified accountant. Copies of your tax statements from HMRC will also be required.
For contractors slightly different rules can apply. Many mortgage lenders can simply multiply your contract day rate by a specific number of working days in the year.
Limited company owners. Mortgage providers will look at the stability of your business; they will consider your businesses’ income and whether it has increased or decreased in recent years.
Forget the idea that self-employed people attract higher mortgage payments. If you can supply enough information about your income, you should qualify for the same mortgage deal as anyone else