Will lenders limit my borrowing because of my employment status? Will I be required to provide many years worth of accounts? Will the mortgage application be more complicated because I’m self employed? These are common concerns of those who are self employed and want to get a mortgage.
The good news is there has been much improvement by mortgage lenders who are gradually improving the way they assess self employed people meaning you are no longer limited to a small selection of specialist providers and the application process is becoming more simple.
To improve your chances of getting a great self employed mortgage deal, follow these top tips:
Keep comprehensive records of your finances to prove your income, especially if you are a fairly new business. You should make it as easy as possible for lenders to assess your financial circumstances.
If you want to get a mortgage or remortgage in the near future, speak to your accountant as it may be the way they structure your accounts will affect the size of the mortgage you are able to access.
Save as much deposit as you can. The bigger the deposit the more choice of rates you will have. Lenders often offer very competitive rates for people who can provide a deposit of 25% or more.
Shop around. With the bank rate at an all time low, there are plenty of good mortgage deals on offer but it can be time-consuming searching and comparing deals. A mortgage broker such as The Mortgage Hut can save you time and effort by scouring a wide range of products to find you most suitable deal.