It’s surprising how often self-employed individuals assume that owning a business or working for themselves makes it difficult or even impossible to obtain a mortgage. The reality is that many lenders understand the unique circumstances of self-employment and have straightforward processes in place to assess how much they are willing to lend.
Understanding How Lenders Assess Self-Employed Applicants
Whether you’re a sole trader, a partner, or a company director, there is a clear process for securing a mortgage:
- Sole Traders and Partners: Lenders typically consider the net profits of the individual.
- Company Directors: The focus is on salary and dividends, but some lenders also account for the applicant’s share of net profits and salary. This is particularly useful for business owners who do not withdraw their full entitlement from the business.
Income Evidence Requirements
Lenders vary in their requirements for income evidence. Here’s what to expect:
- 2–3 Years of Accounts: Most lenders will require proof of income over the last two or three years. They will either average this out or base their calculations on the most recent year.
- 1 Year of Accounts: If you have a strong financial profile, some lenders may accept just one year’s set of accounts, opening up opportunities for newer businesses.
Our Services for Self-Employed Applicants
Navigating the mortgage process as a self-employed individual can be complex, but we’re here to help. Our services include:
- Tailored Advice: Get personalised guidance based on your business structure and financial profile.
- Market Comparison: We search across the market to find lenders that specialise in self-employed mortgages.
- First-Time Buyers: Support for those buying their first home.
- Buy-to-Let Mortgages: Advice for those looking to invest in property.
- And More: Explore a range of services designed to meet your unique needs.
Contact Us Today
If you’re self-employed and looking for expert mortgage advice, contact us today. We’ll help you navigate the process, find the right lender, and secure the best mortgage deal for your circumstances.