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    Expert Mortgages for Self-Employed Individuals

    A large proportion of our clients are self-employed.

    This includes self-employed individuals, business owners, and ambitious entrepreneurs. Many individuals may find nowadays they generate part of their income through various self-employed avenues, whether this be through additional buy-to-let properties, higher earner tax returns or year-end pension reclaims.

    With extensive knowledge of arranging mortgages for self-employed individuals, we are well-versed in the nuances of self-employment and the diverse affordability criteria set by these specialist lenders.

    Self-employed individuals may find mainstream lenders are inflexible to meet their borrowing needs however, thankfully there are specialist lenders who offer more flexibility in such situations.

    We empower mortgage seekers to discover a range of competitive mortgage products for which they may have previously believed they were ineligible. We understand that no two self-employed individuals are the same, and your mortgage needs may be as unique as your business.

    Please remember your home may be repossessed if you do not keep up repayments on your mortgage.

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    Is it difficult to arrange mortgages for self-employed individuals?

    It is widely acknowledged that self-employed individuals are likely to face more challenges securing a mortgage compared to a full-time permanent employee. The primary hurdle in securing a mortgage is often their lack of awareness about available options.

    Even as more and more individuals opt for self-employment, there are many who face certain challenges when applying for a mortgage. This most commonly involves proving a steady flow of income, paying yourself too low of a salary or trading for a short period. A large portion of the working population could be unfairly excluded from the mortgage market, despite being perfectly equipped to meet the financial demands posed by such loans.

    Mortgages for company directors can be rather complex. There are a number of different ways that lenders look at income for controlling company directors; some base it solely off drawings, others through the share of gross profit before or after tax, some look at a 2 or 3 year average, whilst others look at the latest year only.

    We recognise the complexities associated with being self-employed and believe this shouldn’t hinder your homeownership plans. Using our network of specialist lenders and extensive knowledge of the mortgage market, we are exceptionally placed to find the right solution for you.

    Who do lenders consider as self-employed?

    To be considered a self-employed individual by a lender, you will own more than 20% to 25% of a business, which is also your main source of income.

    You will need to have been self-employed for a minimum of one year to qualify for a mortgage.

    You may be a:

    • Sole trader
    • Company director
    • Partner
    • Contractor who has set up a limited company
    A self-employed woman contacting an independent mortgage broker

    What documentation do I need as a contractor or self-employed professional for proof of income?

    The documentation required for proof of income depends on your personal circumstances and how you trade, whether you are a sole trader, limited company, or contractor.

    Gathering the necessary paperwork for a self-employed mortgage application can seem overwhelming. However, we are here to streamline the process for you. Our team will guide you on all other documentation required, which may include financial statements, tax returns, business bank statements, and other relevant paperwork.

    We’ll work together to ensure you have a complete application that showcases your financial stability and borrowing capacity.

    Are mortgages for the self-employed more expensive?

    While self-employed individuals may face certain challenges when applying for a mortgage, such as providing proof of income, it does not necessarily mean they will automatically be subjected to higher mortgage rates compared to a permanent, full-time employee.

    The mortgage rate that is feasible to you is more likely to depend on your deposit amount, credit rating and overall financial situation.

    As long as you are able to provide sufficient documentation for proof of income, you should be at no lesser advantage than if you were to have full time permanent employment. If you face challenges using a high street lender, specialist lenders exist in the market who understand the unique nature of self-employment and can offer more flexible solutions, however these rates may be higher. We can help connect you with the right lender that works for you.

    Expert mortgage advice you can trust   | Speak with an expert now or Arrange a call back or

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