Are you looking for a Self Employed Mortgage? Well, the first thing you need to know is, if
you are Self Employed, you are going to be applying for a regular mortgage, just like anyone
who is employed. You also need to know its no more difficult or complicated to do!
Lenders will consider you as self-employed if you own around 20% of a business or more.
This means you could be a sole trader, a partner, director or a contractor who has set up a
limited company for a lender to class you as Self Employed.
If you are Self Employed or own your own business, most lenders will want you to have been
trading for two years or more to get a Mortgage. This is so they can get a good idea of your
regular earnings and sustainability on your income. They don’t look at what you currently
earn like they would if you are self-employed, instead they will look at your total income from
the last couple of years.
Here is where it gets a bit more complicated and why you should see a mortgage adviser.
Most lenders will just average your last 2 years income. Some though will just use the latest
if it is higher! Then if you are a company director there are lenders that will use your salary
and dividends but also lenders that will use your profit instead! Finding the right lender for
your circumstances just takes a bit more time and knowledge. All of our advisers are
experienced with many different sources of income so you can be assured you are in safe
hands.
…You will just need different things to prove your income.
The main difference when you are self-employed is how you prove your income. Most of the
time we will ask you for your last 2 years SA302’s and tax year overviews. This will satisfy a
good proportion of lenders. Some though have their own certificate for your accountant to fill
in as they look at more figures.
Aside from proving your income, the process of applying for a Mortgage is very much the
same as any other borrower!
