Starting your research on mortgages can be a scary time, there’s lots to learn before you apply. Research has shown that around 35% of people assume they aren’t eligible or don’t earn enough, and 33% find the process confusing and stressful.
In the UK, there are 4.8 million self-employed people. Many of these think that because their income isn’t regular, they aren’t eligible for a mortgage. It’s best to not discount yourself straight away. In this blog we cover how self-employed people can improve their changes of being accepted for a mortgage, and tips for first-time buyers.
If you’re self-employed and concerned you won’t get accepted for a mortgage, take a look at these tips to increase the likelihood you’ll be approved:
If you’re a first-time buyer it makes the whole process even more confusing and stressful. This can be especially true if you’re self employed or a contractor. Here we provide a few extras that you’ll need to show mortgage lenders:
If you’re a director of a limited company, at a minimum you need to provide your lender with the most recent year’s company accounts or personal tax return. Sometimes this won’t be enough, as you may find your mortgage lender asks for 2 or 3 years’ accounts.
As a sole trader, your mortgage lender will need a year’s worth of finalised accounts (at least) or an SA302 from HMRC dated fewer than 18 months old.
Are you a freelancer or contractor working through a limited company? If this is you, you’ll need to provide your lender with your current contract plus sometimes any contracts over the past 12 months. If this is not possible for whatever reason, you should be able to use your personal tax returns or company accounts.
I began writing for Property Press Online in October 2019. Particular areas of interest are housing market news and new developments in the market.
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