Your eligibility for a self employed mortgage is just as strong as that of an employed individual, despite common misconceptions. The key difference lies in the requirement for additional income verification to assure lenders of your ability to meet monthly payments. Depending on your business structure, you may need to provide specific documentation.
For sole traders or company directors, lenders typically request 2 to 3 years of accounts, along with 2 years' tax calculations (SA302s) and tax summaries. Contractors, on the other hand, are usually asked to demonstrate their work history from the past 12 months, preferably through a contract. If a contract is unavailable, recent accounts or tax returns may suffice.
PLEASE NOTE THAT YOUR HOME MAY BE REPOSSESSED IF YOU FAILTO KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
While lender criteria vary, there are some general steps that can improve your mortgage chances, if you have a:
– Having a large deposit (15% or more)
– Maintaining good credit
– Demonstrating stable income
– Providing minimum 2 years’ accounts
Although the majority of lenders typically prefer businesses that have been operating for a minimum of 3 years, it is still feasible to obtain a mortgage with only 1 year of accounts. However, the options for available deals may be limited, and you might be required to provide a larger deposit. Additionally, lenders will request additional details regarding your employment history and income before you became self-employed. These particulars will be utilized by the underwriter during the evaluation of your mortgage application. deposit. Lenders will also require more information about your work history and income prior to becoming self-employed. This will then be used by the underwriter when considering your application.
Likewise, possessing a poor credit history while being self-employed does not imply that obtaining a mortgage is impossible. However, since mortgage lenders perceive you as a higher risk, the process becomes more intricate and the range of choices may be limited. Consequently, you might be required to provide a larger down payment and accept a slightly elevated interest rate. Nevertheless, Fosters Financial, a mortgage broker, will diligently investigate all the potential alternatives accessible to you.
Being well-versed in the criteria of various mortgage lenders, we, as mortgage brokers, possess the knowledge of what is required to secure approval for a self-employed mortgage application. In order to enhance the likelihood of your application being accepted, we dedicate our time to comprehending your unique needs and circumstances. Once we identify a suitable product that meets your satisfaction, we take charge of the entire process to ensure its successful completion.
If you wish to explore your options further, feel free to contact us or schedule a call with one of our experts today. Rest assured, our advice comes with no obligation.
© 2024 By EcMortgage. EC Mortgage Solution Ltd is an appointed representative of Beneficial Ltd, which is authorised and regulated by the Financial Conduct Authority, FCA number 736655. EC Mortgage Solution Ltd is authorised and regulated by the Financial Conduct Authority, FCA Number 974789.
{{ is_error_msg }}
Duration: {{ service_details.bookingpress_service_duration_val }} {{ service_details.bookingpress_service_duration_label }}
Price: {{ service_details.bookingpress_service_price }}
{{ is_error_msg }}
{{ is_error_msg }}
{{ is_error_msg }}
Your appointment booking summary
Pay Locally
PayPal