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Self Employed Mortgage Requirements

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

Is this the first time you’ve bought a home while self-employed? If so, things will be a little bit different for you this time around – there are a couple of extra steps self-employed individuals will be expected to take to secure a mortgage. So, what are these self-employed mortgage requirements, and how can you meet them?

The requirements

Broadly speaking, the requirements for self-employed individuals are much the same as for those in full-time employment. To summarise, lenders will be looking at:

  • Your credit history
  • Your monthly outgoings
  • Whether you have any outstanding debts

Before you make any applications, examine each of these factors and see if you can do anything to improve upon them. For example, consider paying off any outstanding loans, or perhaps reducing your regular monthly outgoings a little.

They’ll also be looking at the amount you earn, and this is where things start to differ if you’re self-employed. If you’re a contractor, freelancer or sole trader, most lenders will expect you to submit at least two years’ certified accounts with your mortgage application (though there are some that will accept one year). This is to evidence that your income is consistent and isn’t likely to drop any time soon. Providing proof of upcoming contracts will please lenders too, and will improve your chances of getting accepted.

Finding the right mortgage

Even if your credit history is squeaky clean and your income rock solid, finding the right mortgage deal for your circumstances can be quite a challenge. Many self-employed individuals turn to professional mortgage advisors for help.

Here at Derngate Wealth Management, our team of mortgage broker in Northampton can guide you through the mortgage process from start to finish, providing clear, concise and easy to understand advice throughout. When you’re ready to apply, we can help you find the right deal for your needs. Contact us today to arrange your initial consultation.

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