The truth is, it can be a little more complicated for someone self-employed to get a mortgage in comparison to those with a traditional employment status. It can be a frustrating process, so The Mortgage Hut are here to answer a few questions you may have:
How do I prove my income to mortgage providers?
This will depend on whether you are self-employed, a partner, or director of a limited company. It may also vary slightly by mortgage provider but generally if you are self-employed this will be 2 or 3 years proof of income or if you are the director of a limited company then they will consider both salary and dividend payments.
How do the mortgage providers work out how much they’ll lend me?
With income varying from month-to-month and from different sources it can be difficult for lenders to establish a figure, however it will normally be based on a combination of your salary records and credit score. Additionally, banks and building societies now also use a complicated affordability calculator to check you will be able to meet your repayments.
How could a mortgage broker help me?
Lenders view the self-employed as risky which is why they are can be unwilling to provide mortgages for them but the influence of a professional mortgage advisor will add weight to your application. Mortgage brokers have access to a wide range of lenders and can use their specialist knowledge to find you a suitable mortgage provider, check you meet the criteria and help you to provide the correct evidence to make your application a successful one.
Do you have any hints or tips for getting a mortgage when self-employed?
As with all applicants the bigger the deposit the better, this along with a good credit rating will help you access the best rates available. It is also very important that you keep your accounts organised and up to date as these will form the basis of your mortgage application.
Unfortunately, getting a mortgage can be seem exasperating when you’re self-employed but using a mortgage broker like The Mortgage Hut will make the process simple, straightforward and you won’t be paying a premium for the service.
To discuss mortgages for the self-employed just give on our friendly team a call.