Self Employed Mortgages
Ideally three but as long as you have at least one years’ accounts or one years’ SA302, we can look at obtaining a mortgage for you.
Hear from our very own Martyn Barberry discuss all things Self Employed Mortgages.
Self Employed – A guide of what you need to knowIf you’re self employed and trying to obtain a mortgage, it can seem a daunting process trying to prove your affordability and you may assume lenders will not view you as an ‘ideal’ applicant. However, self employment has grown exponentially in the past few years; with more and more people deciding to go solo, self employed mortgages are becoming increasingly common in the mortgage world.
Is it worth applying for a self employed mortgage with only one years’ worth of accounts?Traditionally, mortgage lenders would have liked to see at least three years’ worth of business accounts, however, this has changed since the market has progressed. As long as you have at least one years’ accounts or one years’ SA302, we can look at obtaining a mortgage for you.
Buy-to-let mortgages for self employed peopleWhen it comes to buy-to-let mortgages for the self employed, a lender will show most attention when it comes to assessing your affordability to the rental income the property is going to yield and whether this is comfortably going to be able to cover your mortgage payments. In addition, some lenders do like you to have a minimum personal income of £15k on top of this, whether you’re self employed or not.
Joint mortgagesIf you are buying a mortgage within a couple, where one person is self employed and the other isn’t, you are still able to secure a mortgage. As a broker, we would look at the employed persons’ proof of income through payslips and P60’s and the self employed income would be assessed based on one years’ SA302 or one years’ worth of accounts.
What other documents will you need for your mortgage application?Other than your proof of income, there will be other documents that you will need to supply a lender throughout the mortgage process:
- Proof of identity
- Proof of address
- Last three months bank statements
- In the event of COVID-19, some lenders are also asking for business bank accounts as well as personal bank accounts so they can ensure your income hasn’t been adversely affected during the virus outbreak.