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How To Get A Mortgage When Self Employed

Your home may be repossessed if you do not keep up repayments on your mortgage.

If you’re self-employed – be it as a freelancer, sole trader or contractor – you’re probably well aware that you’re considered ‘higher risk’ by lenders evaluating your mortgage applications.

This is because, unlike full-time employees, your income can vary from month to month. And, in the eyes of mortgage lenders, any significant fluctuations in your earnings could leave you unable to keep up with your monthly repayments – bad news for all involved.

Plenty of self-employed people can and do get mortgages, though – and one could be well within your reach. You just have to know what lenders are looking for.

Put your best foot forward

Before you consider making mortgage applications, you should evaluate your finances and see if you can identify areas which a lender may consider risky. This could include:

  • A poor credit history
  • Excessive monthly outgoings
  • Outstanding debts

Before you go any further, try to address these potential issues to maximise your chances of getting accepted.

Most lenders will also require you to submit at least two years of certified accounts, though some will accept just one year. Regardless, the more evidence you have of your earnings (and their consistency), the better. If you work as a contractor, it’s wise to include plenty of evidence of upcoming work. This will give lenders more confidence that you’ll be earning enough to keep up your repayments, at least for the foreseeable future.

Find a deal that works for you

The mortgage market is a complex one full of potential pitfalls, especially for the self-employed. That’s why many people in this scenario choose to speak to a professional mortgage advisor.

Our experienced team of mortgage broker in Northampton are well accustomed to helping self-employed home buyers find the right mortgage deal. We’re here to provide easy to understand, jargon-free advice at every stage of the process, and we can also search an array of lenders to find a deal which works for you.

Contact us today to arrange your initial consultation with us.

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