Self-Employed Mortgage
Getting a mortgage when you are self-employed can be more complex than a standard employed application.
Lenders may assess your income differently depending on whether you are a sole trader, limited company director, contractor, partner or business owner.
Mortgage Centre helps self-employed clients understand how lenders may view their income before an application is considered.
[ WHO WE HELP ]
Sole traders
Limited company directors
Contractors
Freelancers
Partners in a business
CIS workers
Business owners with retained profits
Clients with fluctuating income
Clients with one year's accounts
Clients with complex income and adverse credit
Why self-employed mortgage cases can be more complex?
Self-employed income is not always straightforward. Some lenders use an average of the last two years' income. Others may consider the latest year, salary and dividends, net profit, share of net profit, retained profits, contractor day rate or accountant-prepared figures. This means one lender may decline a case while another may assess the same income differently.
[ WHAT THEY LOOK AT ]
Sole traders
Limited company directors
Contractors
Freelancers
Partners in a business
CIS workers
Business owners with retained profits
Clients with fluctuating income
Clients with one year's accounts
Clients with complex income and adverse credit
How Mortgage Centre helps?
Mortgage Centre reviews your income structure, credit profile, deposit, affordability and property plans before a lender approach is considered. This can help identify lenders who may take a more suitable view of your self-employed income.
[ FAQs ]
Can I get a mortgage if I am self-employed?
Possibly. It depends on your income, trading history, accounts, deposit, credit history and lender criteria.
Do I need two years' accounts?
Not always. Some lenders may consider one year's accounts, but options can be more limited.
Do lenders use salary and dividends?
Some do. Others may use net profit, share of net profit or other income measures depending on the business structure.
Can I get a mortgage if my latest year's income is higher?
Possibly. Some lenders may consider the latest year, while others use an average.
Can I get a self-employed mortgage with bad credit?
Possibly. This depends on the credit issue, how recent it is, your income, deposit and affordability.
[ WHAT DO YOU NEED ]
Personal
Passport
Proof of address
Credit report
Income
Payslips & P60
SA302s & Accounts
Bank statements
Property
Memorandum of Sale
Estate agent details
Solicitor details
[ GLOSSARY ]
HMO: House in Multiple Occupation
SPV: Special Purpose Vehicle
IVA: Individual Voluntary Arrangement
DMP: Debt Management Plan
CCJ: County Court Judgment
[ DISCLAIMER ]
Your home may be repossessed if you do not keep up repayments on your mortgage.