I’m self employed – can I get a mortgage?
If you’re self employed, getting a mortgage isn’t impossible, but it is harder. You’ll need strong proof of income, which can be difficult when your income isn’t always the same from month to month, or you may work on short-term contracts. To prove your income, mortgage lenders will usually require both proof of your business accounts (usually 2 to 3 years worth), and these will need to be signed off by an appropriate accountant. You may also be required to show any tax returns you’ve made such as self-assessments. The lender will make an assessment based on your profits and any income you’re taking. Using a mortgage broker can help, as they’ll know exactly what is required from each lender and factors that’ll increase your chances of success. If you’re just starting out, your application may not be accepted, or if you’ve got a partner, sometimes only their income can be included on the mortgage application.
When you get to the end of your introductory mortgage offer, it’s often the case that you’ll be switched to a variable rate mortgage in line with the lender’s standard variable rate (SVR). However, many choose to remortgage if they can get a better deal elsewhere. Remortgaging when self employed makes things more complicated. However, hopefully you’ll have a few years if accounts by this point and can prove your income. Get advice and support about your options.
When looking to apply for any type of mortgage, getting professional, impartial advice can help you get the best mortgage product for you. Find a trusted mortgage adviser in your local area here.