SELF EMPLOYED MORTGAGES

Getting a mortgage when you’re self employed? 

If you’re self-employed, it can be more of a challenge to get a mortgage because you’ll need to prove you have a reliable income. But getting a mortgage when self-employed is certainly not impossible. Theoretically a self employed mortgage is no different to regular mortgages however they are more complex because as an applicant, you’ll need to provide more information for lenders to consider. This is because your earnings are not as easy to track as those who are employed. As a self-employed customer, you still have access to the same mortgage products as everyone else. As a specialist mortgage broker, we can make it easier for you to access these products.

What do lenders class as self employed?

Lenders consider you to be self employed if you have more than a 20% share of the business that is your main source of income. You may be a sole trader, in a partnership or a director in a limited company. Freelancers hired to work for different companies and independent contractors are also classed as self-employed.

Self employed documents:

To prove your income when you apply for a self-employed mortgage, you will need to provide:                          

  • SA302 forms or a tax year overview (from HMRC) for the past two or three years.
  • Two or more years’ certified accounts.
  • Evidence of upcoming contracts (if you’re a contractor)
  • Evidence of dividend payments or retained profits (if you’re a company director)
  • A full trading history

If you don’t have everything here, there’s no need to be concerned since there are some lenders who will consider your application based on the information you can provide. 

Furthermore, it helps your application if you have a good deposit because this will lower your Loan to Value (LTV). Your credit rating will also be a factor, but if you do have a bad credit history, we will still consider your application.

Have a more specific question you need answered? Ask our mortgage experts by clicking the button below.

CROWN FINANCIAL LTD

  • Crown Financial Ltd (FCA No.959847) is an Appointed Representative of Connect IFA Ltd (FCA No. 441505) which is Authorised and Regulated by the Financial Conduct Authority  and is entered on the financial services register (https://register.fca.org.uk/) under reference 959847. The FCA does not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.                               
  • Crown Financial Ltd Registered Office: 118B, Gubbins Lane, Romford, RM3 0DR. Company Registered in England and Wales Reg. 13486324. Crown Financial Ltd is registered with the Information Commissioner’s Office under registration reference: ZB243625. Copyright © 2021 All Rights Reserved.
  • A fee will be payable for arranging your mortgage with Crown Financial Ltd. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity, but this is typically 0.5% of the mortgage balance, e.g. £500 for a mortgage of £100000. Initial consultation is always free.
  • A fee of (minimum £99 – £199) is payable at the outset when you apply for the mortgage.
  • We don’t charge any fee for insurance services. 
  • Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.
  • Making a Complaint: It is our intention to provide you with a high level of customer service at all times.  If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service www.financial-ombudsman.org.uk
 
  • Your home may be repossessed if you do not keep up repayments on your mortgage or loans secured on it.