Getting a mortgage when self employed
Published 2nd April 2018
We are frequently asked ‘can I get a mortgage if I am self employed?’, or ‘how many years accounts are needed for a self employed mortgage?’, by many of our visitors looking to buy or remortgage, because the feeling in the market since the economic recession is that getting a mortgage when self employed can be impossible. This is simply not the case at all.
Self employed applicants love the advisors we work with because:
- Whole of market | with access to direct and broker exclusive self-employed products.
- Independent | giving you the best advice for you, not what's best for someone else.
- Experienced | highly trained, fully qualified, and with a wealth of experience in arranging self employed mortgages.
All the advisors we work with have access to each and every UK lender, including those that specialise in self employed mortgages, so if there is a mortgage out there for you'll find it.
Self employed people can apply for the same mortgages as employed, and do so in almost exactly the same way, however there are often a few differences depending on the lender.
Proving your income if you're self employed
Some self employed mortgage lenders request different income evidence to others, with many requiring at least the last 2 years accounts, SA302’s (self assessment returns), or accountant references. Gone are the days of self-cert mortgages, so almost every bit of lending regulated by the FCA must have supporting proof that a borrower can afford to make repayments. There are some secured loan lenders still offering self-cert mortgages that are not regulated by the FCA, and of course buy to let mortgages are still obtainable without proof of income in certain circumstances.
Occasionally references required to evidnce that a business is continuing as a going concern and maintaining a consistent level of income thoruhgout the mortgage term is viable.
Length of time in work
Employed applicants can often get a mortgage from the day they start employment, or even up to 3 months in advance in some circumstances, whereas self-employed mortgage lenders require you to have at the very least 1 years full accounts.
Although credit scoring systems are an untamable beast, it is thought that some lenders penalise self-employed borrowers and give them a lower credit score than employed applicants.
Self employed mortgage retirement age
Even if you tick all the boxes in terms of income proof, credit score, and deposit amount etc, getting a mortgage on a self employed basis can still be tricky for those looking to borrow over longer terms, or applicants that are older at the time of application. Certain lenders have a restriction on the viable working age for certain occupations, and often self employed positions such as tradesmen, builders, and other more physical jobs are restricted to 67 or even 65. Employed occupations tend to be more flexible and allow retirement ages up to 70.
If you’re having trouble finding a mortgage lender that lends you enough – let us know! The experts can help you today, just get in touch either with a quick question or a full enquiry. If you require immediate assistance please give us a call