Self Employed

A lot of people think that getting a mortgage when you are self-employed is difficult. In reality similar criteria applies as if you were employed. The key is being prepared.

Key Mortgages can help you prepare, plan and provide all the documentation needed to apply for a self employed mortgage.

Am I eligible for a self employed mortgage?

To apply for a self employed mortgage you must have more than a 20% share of a business, meaning you could be a sole trader, director or a contractor.

Mortgage lenders will ask you to provide 2 or more years of accounts along with SA302 (tax year overview) forms. The more documentation you can provide the better, as lenders will also look at your expenditure and upcoming contracts to determine if you’re eligible.

Is it harder to get a self employed mortgage?

When applying for a self employed Every lender will have their own criteria and there are other factors to be considered other than income.

To make your application as smooth as possible speak to a broker first, keep your accounts up to date and ensure you are on the electoral roll which in turn, can improve your credit score.

Do I have to pay higher mortgage rates if I’m self employed?

The mortgage rates you pay again depend on the documentation you can provide and the size of the deposit you can put down. This alongside a good credit score will get you a better mortgage deal.

Questions & Answers

How are self-employed mortgages different to standard mortgages?

A self employed mortgage is aimed at individuals who own 20% to 25% of a business from which they make their main income. Your reliability to a lender will be different to those who aren’t self employed which makes the specifications different.

How many years do I need to have been self employed?

Lenders will ask to see 3 years of accounts as proof of income to proceed with a self employed mortgage.

Is it harder to get a mortgage if I’m self employed?

If you are self employed, you will have access to the same range of mortgages as others. If you have a reliable income and are able to prove it, you shouldn’t struggle to get a self employed mortgage.