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Thursday 2 December 2021
Thursday 2 December 2021
Thursday 2 December 2021
Thursday 2 December 2021
When you're self-employed, getting a mortgage isn't impossible—despite the common misconception. Many self-employed individuals believe their employment status excludes them from mortgage eligibility. In reality, lenders are familiar with the unique circumstances faced by self-employed applicants and have developed processes to assess affordability. Whether you're a sole trader, partner, or company director, there are specific criteria and pathways to secure a mortgage.
For sole traders and partners, lenders primarily consider individual net profits. In contrast, company directors are assessed based on their salary and dividends. Some lenders also account for the applicant's share of net profits and salary, acknowledging that business owners may not withdraw their full earnings from the company.
The time frame for providing evidence of income varies among lenders. Most require two to three years of tax returns and accounts, either averaging the income or using the most recent year's figures. However, for applicants with strong profiles, certain lenders may approve mortgages based on just one year’s accounts.
Additional Considerations for Self-Employed Mortgages
Freelancers often juggle multiple income streams, which can complicate mortgage applications. For instance, freelance musicians may earn some of their income on a self-employed basis and the rest through PAYE (Pay As You Earn) roles, where taxes are deducted at source. While these income types appear differently on an SA302 form, they can all contribute to annual income when presented clearly and justified properly.
Barrett Mortgages, a professional finance broker based in Poole, Dorset, specialises in assisting clients with unique financial profiles. Founded in 2009 by Darren Barrett during challenging market conditions, the company has built its reputation on clear, honest, and personalised service. By prioritising transparency and avoiding pushy sales tactics, Barrett Mortgages has earned a strong referral-based client network.
Why Choose Barrett Mortgages?
At Barrett Mortgages, our qualified and experienced team is committed to delivering the best possible customer experience. Whether you need a mortgage tailored to your self-employed income or general financial advice, we’re here to help.
Key Features of Our Service:
Expertise: Fully qualified staff with years of experience.
Trustworthiness: Honest and upfront advice with no hard-sell tactics.
Personalisation: Tailored solutions for unique financial situations.
Local Support: Based in Poole, Dorset, with a focus on the community.
If you're self-employed and want to explore your mortgage options, get in touch with us today. Let us guide you through the process and help you achieve your homeownership goals.
When you're self-employed, getting a mortgage isn't impossible—despite the common misconception. Many self-employed individuals believe their employment status excludes them from mortgage eligibility. In reality, lenders are familiar with the unique circumstances faced by self-employed applicants and have developed processes to assess affordability. Whether you're a sole trader, partner, or company director, there are specific criteria and pathways to secure a mortgage.
For sole traders and partners, lenders primarily consider individual net profits. In contrast, company directors are assessed based on their salary and dividends. Some lenders also account for the applicant's share of net profits and salary, acknowledging that business owners may not withdraw their full earnings from the company.
The time frame for providing evidence of income varies among lenders. Most require two to three years of tax returns and accounts, either averaging the income or using the most recent year's figures. However, for applicants with strong profiles, certain lenders may approve mortgages based on just one year’s accounts.
Additional Considerations for Self-Employed Mortgages
Freelancers often juggle multiple income streams, which can complicate mortgage applications. For instance, freelance musicians may earn some of their income on a self-employed basis and the rest through PAYE (Pay As You Earn) roles, where taxes are deducted at source. While these income types appear differently on an SA302 form, they can all contribute to annual income when presented clearly and justified properly.
Barrett Mortgages, a professional finance broker based in Poole, Dorset, specialises in assisting clients with unique financial profiles. Founded in 2009 by Darren Barrett during challenging market conditions, the company has built its reputation on clear, honest, and personalised service. By prioritising transparency and avoiding pushy sales tactics, Barrett Mortgages has earned a strong referral-based client network.
Why Choose Barrett Mortgages?
At Barrett Mortgages, our qualified and experienced team is committed to delivering the best possible customer experience. Whether you need a mortgage tailored to your self-employed income or general financial advice, we’re here to help.
Key Features of Our Service:
Expertise: Fully qualified staff with years of experience.
Trustworthiness: Honest and upfront advice with no hard-sell tactics.
Personalisation: Tailored solutions for unique financial situations.
Local Support: Based in Poole, Dorset, with a focus on the community.
If you're self-employed and want to explore your mortgage options, get in touch with us today. Let us guide you through the process and help you achieve your homeownership goals.
