Self Employed
Self Employed Mortgage Advice
Self Employed
A self-employed person is considered to be working if she/he meets one of the following criteria: works for the purpose of earning profit spends time on the operation of a business or is in the process of setting up his/her business. Self-employed persons include employers and own-account workers.As self employment becomes a viable and attractive proposition in a wide range of industries, lenders are offering a greater selection of options to those applicable.
Whether you are a sole trader, director of a limited company, or partner of an LLP we have you covered all the way. A self-employed person refers to any person who earns their living from any independent pursuit of economic activity, as opposed to earning a living working for a company or another individual.
Is it difficult to get a mortgage when you’re self-employed?
Being self-employed can cause some challenges whilst trying to get a mortgage as you’ll need to be able to show you have a regular and reliable income, which is not always straightforward. There are many steps that can be taken to show a mortgage lender your income is reliable, but most commonly this will involve your annual tax return and your latest bank statements to demonstrate the recent income.
You’ll be pleased to know that getting a mortgage when you are self-employed is far from impossible. The important thing to bear in mind is that all mortgages are the same and you will be treated no differently to somebody on PAYE. Most lenders will also expect applicants accounts and returns to have been prepared by a qualified accountant where a member of a partnership or limited company.
What will I need to provide to apply?
As above, the key to an application is demonstrating an accurate portrayal of your income. This may include:
- Evidence of historic and ongoing contracts.
- Certified accounts for a limited company/partnership
- Accountants certificate/reference
- Tax Year Calculation
- Tax Year Overview
How much deposit will I need?
As the range of products are available to all candidates, the level of deposit required will match the current market. As it stands a minimum of 5% would be applicable, however by obtaining 10% or 15% deposit you will find a greater scope of option.
Naturally this will also depend on the overall circumstances of the case, such as history of self-employment, affordability of the loan, as well as credit profile.
How can I find the best deal for me?
With so many different criteria between different lenders, it can feel overwhelming for you trying to find a mortgage when you are self-employed. Reach out to one of our brokers today who will assist you every step of the way from initial phone call, market research, finding a lender and thereafter. Pinnacle have multiple years of experience dealing with all types of mortgages and are ready to assist you today.