Obtaining a mortgage when you work for yourself can seem a daunting process, but it’s certainly not impossible.

Since 2007’s credit crunch, it’s been more challenging to get a mortgage if you’re self-employed. With self-certification mortgages (no proof of income required) banned by the Financial Conduct Authority since 2011, you now need to provide detailed evidence of your income before a lender will approve a mortgage.

Here’s how to ensure your mortgage application will most likely result in a positive outcome…

Be able to prove your income

The way a lender calculates the amount you can borrow depends on your business set-up. If you’re registered as a sole trader or partner, lenders will take your net profit into account. If you’re a limited company, they will look at your salary and dividends, although in some cases they may look at retained profits of the company. Either way, it’s imperative you have your accounts in order, so consider using an accountant. The length of time you’ve been self-employed is of vital importance, too – lenders will generally want to see at least two years’ worth of accounts.

Keep track of your work

Proving you have a steady stream of work, or having evidence of future jobs lined up, is also beneficial, so ensure your workload is well documented.

Find a mortgage broker

Employing the services of a mortgage broker is invaluable, as they will take time to understand your personal circumstances. What’s more, they will have an unrivalled knowledge of the industry and will know which lenders are willing to approve mortgages to those who are self-employed.

Added extras

You will greatly improve your chances of getting a mortgage application approved if you have a good credit rating and healthy deposit.

At MBA, many of our clients are self-employed, so we’re perfectly placed to understand the challenges you may face. Rest assured, our expert team has built strong relationships with a variety of lenders, and we’ll work closely with you to match you with the right lender and mortgage product.
Please call us today, to explore the options available to you and book a complimentary review.

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