Self-employed? Securing a mortgage need not be mission impossible
Mortgage Solutions Swansea, we are here to help
Being self-employed is an option for an increasing number of the population, for a whole host of reasons, including the pursuit of a better work-life balance and the appeal of being your own boss. Despite common misconceptions, being a ‘selﬁe’ does not need to be a barrier to getting on the property ladder. In many cases it simply requires a little organisation.
One size doesn’t fit all. To be satisfied that you can afford to make the repayments on your mortgage, potential lenders will want reassurance of a steady income. While this is straightforward for those in employment, it is trickier for self-employed people, who are more likely to earn an irregular income.
Although criteria can vary between lenders, typically you’ll be asked to provide proof of earnings in the form of three years’ worth of accounts, before an offer is made, although some may lend on less. It pays to keep your accounts up to date and prepared by a qualified accountant. Be on top of your figures Understandably, lenders will want to carefully analyse your figures to ascertain affordability. In addition to your accounts, be ready to have your business and personal bank statements scrutinised. Your monthly bills, your spending on socialising, credit card bills and any loan repayments will be reviewed too.
Keep saving! Having a substantial deposit behind you is a great starting point, not only for obtaining the mortgage itself, but also for getting access to better deals and potentially reducing your monthly repayments. We are here to help
Getting a mortgage when you’re self-employed can seem like a daunting task, but we are here to help you find the right lender and mortgage to suit your circumstances. Owning your own home does not need to be mission impossible.