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  • Writer's pictureCharlotte Oakley

Can I get a mortgage if I'm self-employed?

Updated: Dec 20, 2023

Getting a mortgage when you're self-employed can be slightly more challenging than when you're an employed individual with a consistent income but it is possible!

At Your Mortgage Room, we have plenty of experience helping self-employed individuals. We can provide guidance specific to your situation, help you understand the available mortgage options, and connect you with lenders who specialise in self-employed mortgages.

To make this as seamless as possible, there are a few things you can do to get started:

Prepare your financial documents: As a self-employed individual, you'll need to provide detailed documentation to demonstrate your income and financial stability. This typically includes at least two years of personal and business tax returns, profit and loss statements, balance sheets, and 6/3 months bank statements.

Organise your business records: Lenders will want to assess the stability and viability of your business. Prepare relevant business records, such as business licenses, contracts, client lists, and any other supporting documents that showcase the financial health and longevity of your business. These may not be necessary in all cases but in some instances it’s really important. For example, if you have been self employed for one year, the lenders may want to work from a projection which is built from some of the business records above.

Show stable income: Lenders want to see consistent income to ensure you can afford the mortgage payments. Provide evidence of stable or increasing income over the years, as it can boost your credibility.

Maintain a good credit score: A strong credit score is essential for mortgage approval. Ensure you have a good credit history by paying bills on time, keeping credit card balances low, and minimising new credit applications such as purchasing a new car on finance.

Build a deposit: A larger deposit can strengthen your mortgage application and improve your chances of obtaining a mortgage. Aim for a deposit of 10% or more to potentially secure better interest rates and loan terms.

Be prepared for a thorough underwriting process: Be prepared for an extensive underwriting process, which may involve additional requests for documents or clarification.

It is highly recommended that you book an appointment with an experienced mortgage broker to discuss the many options which may not be available on the high street.

Your home may be repossessed if you do not keep up with your repayments

There may be a fee for mortgage advice. The precise amount will depend upon your circumstances but will be agreed with you before proceeding.

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