Self Employed Mortgages

Our Self Employed Mortgage Service

Based in Bristol and Edinburgh we can offer you a first class mortgage service: 

Special features of what we offer include:

• Whole of market service - we compare UK lenders who provide self employed mortgage products
• Telephone based service - you are welcome to come to our offices if you prefer a face to face meeting
• Latest Rates - Access to leading market mortgage rates
• Exclusive Offers - Access to mortgage deals not available on high street
• Fast turnaround - speak to us today if you need to move quickly
• Personal service from start to finish
• Looking to raise additional finance on top of your existing mortgage or buy to let mortgage? - we have access to a range of finance solutions

To investigate your self-employed mortgage options call our team on 0117 403 4474 or fill in our call back form.

If you are self employed you could find getting a mortgage more difficult than people in standard employment as you can’t offer the lender the reassurance of a guaranteed salary. However, there are ways for those who are self employed to prove that they can afford to make mortgage repayments without needing the backing of a permanent employer.

What counts as ‘self-employed’?

A mortgage lender will consider you self-employed if you own more than a set percentage of a business. This is usually around 20 to 25%. Therefore, if you are a sole trader, in a partnership, or a company director, you may be considered self employed for the purposes of taking out a mortgage. If you are classed as self-employed then you will need to prove the income that you are declaring. This can be done by supplying the accounts of your business or an accountant’s reference, which usually need to be prepared by a qualified accountant.

Are self-cert mortgage still available?

In the past, many self employed people relied on self-certified mortgages, which are no longer on offer following the banking crisis in 2007. Self certification mortgages did not require proof of income, which meant that self-employed people were able to borrow large amounts without having to provide proof of earnings. They were subsequently banned by the Financial Conduct Authority (FCA). 

However, there are lenders who will offer mortgages to self employed people that have rates similar to those offered to traditional employees.

Where to get a self employed mortgage

Some specialist lenders offer mortgage deals designed specifically with the self-employed in mind. However you might not necessarily need to use a specialist lender because many mainstream mortgage lenders will also offer loans to self-employed people on a case-by-case basis. Lenders will want to see around two years’ worth of accounts plus your most recent SA302 form. This is the tax calculation form that HMRC sends out annually and will show the lender how much tax you owe in a given tax year.

How are mortgages for self employed people assessed?

A normal mortgage application will be assessed on the basis of your salary - which meant that, in the past, many self employed people faced difficulty securing the mortgage they wanted. However, mortgage applications for self employed people are assessed differently from traditional mortgage applications. A mortgage lender will assess a self employed mortgage application on a case by case basis, using the evidence you provide in the form of your accounts and business records to decide whether to offer you a mortgage.

Top tips for getting a mortgage if you are self employed

• Keep all your documentation and accounts up to date.
• Hire an accountant to prepare your accounts and tax return – but make sure that they know you are applying for a mortgage. In normal practice, an accountant will usually use legitimate methods to minimise a client’s income for tax purposes, but if you trying to get a mortgage, this can have an adverse effect as you want to present the maximum possible income to the lender.
• Speak to an independent mortgage broker about your options if you are unsure how to proceed.
• The higher the deposit you can put into a property, the less risk the lender is taking on. This can mean lower repayment rates.
• It’s especially important to check your credit record if you’re applying for a self employed mortgage as it reassures the lender that you have a good history of making repayments, helping to balance their perception of your risk as a non-conventional mortgage borrower.

To find the best self employed mortgage deals call our team on 0117 403 4474 or request a callback.