Self-Employed Mortgages

Self-Employed Mortgages

February 1, 2023
Self-Employed Mortgages

Securing a mortgage while self-employed can be an overwhelming task. The uncertainty surrounding the cost-of-living crisis makes it a challenging environment, so it is important to understand the options available for self-employed people.

What is a self-employed mortgage?

The term ‘self-employed mortgage’ implies that there are different deals for the self- employed. In reality, lenders offer a similar choice of mortgages regardless of your employment type, although dependant on your personal circumstances you may be offered a limited range of deals.

Self-employed borrowers can be viewed as more of a liability or risk, since their income isn’t secure. This is one of the reasons why lenders then require further information in order to prove that you, as a borrower, have a reliable income and can afford the mortgage payments.

What documents do you need?

Lenders will ask for a variety of documents, depending on your self-employed status. These documents could include finalised and certified accounts, HMRC tax year overviews, business bank statements or projected income figures and future plans. Lenders are looking at income and affordability, so whether you are a sole trader, freelancer, limited company or contractor these documents may differ.

Ultimately, we are here to help. Whether you are newly self-employed or have years of experience, there may be options out there for you. 

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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