Mortgages if you’re self-employed or a contractor
For many people who are self-employed, the idea of being able to obtain a mortgage can seem out of reach.
While it’s true that lending restrictions have been tightened since 2007, it is indeed still possible to obtain a mortgage if you are self-employed. Sole traders, partners, contractors and directors of limited companies can still obtain financing for a property purchase, albeit there is more paperwork that needs to be carried out in order to do so.
It is a common misconception that there are special mortgages specifically for the self-employed – this is not the case. You can obtain the same mortgage products as employees so long as you have the right documentation to prove your income. At My Mortgage Force, we can provide assistance with every step of the application process to give you the best chances of procuring a mortgage if you are self-employed.
What do I need to do to get a mortgage?
For a lender to approve a mortgage, they will need to see proof of income first and foremost.
For most financial providers, this should be submitted in the form of two year’s accounts that have been prepared by a chartered accountant. Most lenders will average out your earnings over the years provided, and base the amount they will lend you on that average figure. You should also be able to prove you are receiving regular work and income to demonstrate that you’re able to keep up with your mortgage payments. If you have not been self-employed long enough to have two year’s accounts, don’t panic – it may still be possible to apply depending on a lender’s specific criteria.
You will also need to have a good credit history, and as is the case with any mortgage, having a large deposit will also better your chances of being approved.
Speak to us today
In these particular cases, working with a certified mortgage broker can be incredibly useful.
We understand the complexities of applying for a mortgage when you are self-employed, and as we have a wide network of lenders, we are able to connect you with specialist lenders who deal with these sorts of applications. We can also provide further guidance on the paperwork you will need, and how to put together the strongest possible application to heighten the chances of getting an approval. We will show you all of the options side by side, so that you can find the best rate and mortgage product for you.
Getting a mortgage if you are self-employed may require more effort, but it certainly is possible. To find out more about how we can simply this process for you and provide much-needed support, contact us today.