We get many enquiries from freelancers and self-employed about mortgage accessibility, so we have created this post to share the most important aspects of getting your mortgage approved when you are self employed.
In recent years it has become slightly more complicated to apply for a mortgage as self employed but that should not deter you as it is far from impossible. We have helped many achieve their mortgage goals so here are, from our experience, a few aspects to be aware of when getting ready to apply for a mortgage as self employed.
Financially sound records
What lenders look at are a few essential signs of financial health. Most will ask for your accounting records with the last two years accounts available and up to date.
If that is not available though, don’t worry, as we have been able to obtain mortgages for self employed people with 1 years accounts/tax returns. In some cases, we can even get newly self employed people mortgages within the year (if they have worked in same industry and went from employed to self employed).
Ideally, you will keep accounting with an (ideally chartered) accountant – as this is another requirement from UK lenders. What lenders generally look for is a healthy profit, so it is wise to watch the expenses you claim as self-employed previous to your mortgage application as they will impact on your profitability.
Good deposit and credit score
Last but not least, as with all those who seek mortgage approval you will need a good deposit and credit score, so make sure you check your credit history and take the necessary steps to improve on your credit rating as much as possible before applying for a mortgage.
When you are self-employed, the lender will not only check your personal credit history but also that of the business, so make sure your business is in tip-top shape, with a healthy credit score.
Speak to The Mortgage Hub
Working with an independent financial advisor such as ourselves can provide real value when you are self employed. Our friendly team has helped many self employed get their mortgage approved already; we know which lenders offer the best conditions for your personal circumstances and can help you navigate the process of getting your mortgage approved.
The Mortgage Hub is an independent mortgage advisor serving the greater Glasgow area. Whether you are planning to buy your very first home and need the right first time buyer mortgage, or are looking to re-mortgage due to a house move or to growing family – we understand your journey is so much more than a financial process, it’s a journey to achieve your dreams, improve your lifestyle and achieve your true potential.