Self-employed mortgages.
Sole trader, company director, partner or contractor. Lenders treat self-employed income in very different ways, so where you apply matters.
What is a self-employed mortgage?
There is no special mortgage for self-employed people. You apply for the same products as anyone else. The difference is how you prove your income, and every lender has its own approach.
That works in your favour if you apply to a lender whose approach suits the way you are paid, and against you if you do not.
What do lenders look for?
- Trading history. Most lenders ask for two or more years of figures. Some will consider one year.
- Proof of income. Usually your tax calculations (SA302s) and tax year overviews from HMRC, or accounts prepared by a qualified accountant.
- How you take your income. For company directors, some lenders use salary and dividends. Others will look at salary plus your share of the company's net profit.
- Day rate contractors. Some lenders work from your contract rate rather than your accounts.
- The trend. Rising, steady or falling profits are treated differently, and lenders may use an average or the latest year.
The usual checks on deposit, credit history and outgoings apply too.
How we help.
We start by understanding how your business works and how you pay yourself. Then we match that to lenders whose criteria fit, before you apply.
We tell you which documents you will need and help you get them together, so the application is complete the first time.
If your income is new, uneven or comes with credit problems as well, tell us. Phil started his mortgage career in specialist lending, and less straightforward cases are a normal part of what we do.
Being self-employed added an extra twist, but we are now living in our family home and can't recommend Oak Financial enough for everything during this process.
What happens next.
Book a free call
Tell us where you are and what you want to do. There is no obligation and no hard sell.
See your options
We research lenders against your circumstances and explain what we recommend, what it costs and why.
We handle the application
We prepare and submit it, deal with the lender and keep you updated at each stage.
Offer to completion
We stay involved until you complete, and we are here when your deal is next due for review.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Still have questions?
How many years of accounts do I need?
Most lenders want at least two years. Some will consider one full year of trading, particularly if you were working in the same line of work before. With less than a year, options are very limited.
What documents will I need?
Typically your last two years of SA302 tax calculations with the matching tax year overviews, or certified accounts. Lenders also ask for business and personal bank statements, proof of identity and proof of deposit. We will give you a list that matches the lender we recommend.
I take a small salary and dividends. Does that limit me?
Not necessarily. Some lenders only count salary and dividends. Others will work from your salary plus your share of net profit, which can make a real difference if you leave money in the company.
Can contractors get a mortgage?
Yes. Some lenders assess contractors on their day rate and contract history rather than on accounts. The rules on contract length and gaps between contracts vary by lender.
Have a no obligation chat with us.
So that we can identify your options and the best next steps, book a free call. We will learn about you and your circumstances and put together a plan.