Can I Get a Mortgage If I’m Self Employed?

If you work as a freelancer, contractor or sole trader, you most certainly can get a mortgage – though it can be a little more tricky during the application process.

Here at Derngate Wealth Management Northampton, we help self-employed individuals secure mortgages for their dream homes on a regular basis. Whether you’re looking to purchase your first home or upgrade to a larger property, you will be able to get a mortgage – you just need to know what lenders are looking for.

In short, lenders will want to see as much evidence as possible of your income. The more regular it is the better, as this will give them confidence that you’ll be able to keep up with your monthly mortgage payments as expected.

Most lenders will expect a minimum of two years’ certified accounts, but there are companies out there that will accept just one year. Either way, the lender will use that information to calculate your average monthly income, which can then help determine how much you can borrow.

It can be helpful to include evidence of upcoming work, too. If you’re a contractor, lenders will typically expect you to include proof of forthcoming contracts in your mortgage application, indicating that your income is regular and isn’t likely to drop any time soon.

All of this is of course on top of the typical factors lenders consider when evaluating a mortgage application. These factors include your credit history and spending habits; if you have outstanding debts (whether it be on a credit card or as a result of loans), you should try and get on top of them before considering applying for a mortgage.

Our mortgage broker in Northampton can walk you through the entire process of applying for a mortgage and find a deal which works for you. Plus, we’ll help you submit your application, giving you the best possible chance of getting accepted. Contact us today to book a free initial consultation.