How to get a mortgage if you’re self-employed

When it comes to securing a mortgage, being self-employed can be something of a challenge

As a self-employed individual, you know that being your own boss carries many benefits, especially the freedom of setting your own working hours. However, when it comes to securing a mortgage, being self-employed can be something of a challenge.
While it can be hard to get a mortgage, the good news is, it is certainly not impossible. To increase your chances of securing a mortgage with a self-employed income, consider the following advice:
Allow Adequate Time
When you are self-employed, time is vital to increase your chances of securing a mortgage. This is particularly true in terms of documentation. When applying for a mortgage, most lenders request your SA302 form. As someone who is self-employed, either your accountant or yourself will fill in a self-assessment tax form. An SA302 form is the result of your assessment and shows your total income, but it can take time to arrive so request in advance.
Keep Accurate Records
While there are a select few lenders, such as Saffron Building Society, who will offer a mortgage to self-employed borrowers with only one years’ records, the majority ask for a minimum of two. This means keeping all your paperwork up-to-date, as the more accurate your documentation, the more chance you have of securing a mortgage offer. If you struggle to keep up with your books, turn to an accountant for help.
Talk to Existing Lenders
If you have existing or previous loans or mortgages with your current bank, it may be worthwhile approaching them first. As long as you have a good credit rating and have consistently met your repayments, this strong history will stand in your favour, meaning they may be more likely to offer you a mortgage.
Seek Advice From a Broker
Not all lenders offer mortgages to those who are self-employed, so rather than trawling through company websites and comparisons, seek advice from a qualified broker. As an expert, they will be able to tell you which lenders offer mortgages to those with their own income, as well as provide you with information about rates and how many years of accounts you will need to provide.
Save a Deposit
Lastly but also crucially, you will need a deposit. Just like anyone else trying to secure a mortgage, you need to have a deposit comparative to the amount of your application. While the minimum for some banks is 5%, as a self-employed individual, you are deemed a higher risk, so the larger the deposit, the better.
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