Are you self-employed and seeking the ideal mortgage solution that caters to your specific financial circumstances and entrepreneurial journey? Let's navigate the options for you.
Self Employed
Navigating the mortgage landscape as a self-employed individual doesn't have to be daunting. At Pivot Mortgages, we specialise in helping self-employed individuals secure the right mortgage tailored to their unique circumstances. Here's what you need to know about getting a mortgage when you're self-employed:
Understanding Self-Employed Mortgages
Contrary to popular belief, there isn't a specific mortgage product exclusively for the self-employed. Instead, you'll be applying for the same mortgages available to everyone else. However, as a self-employed individual, you'll need to provide additional evidence of your reliable income.
Do Self-Employed Individuals Pay Higher Mortgage Rates?
You shouldn't have to pay higher mortgage rates solely because you're self-employed. If you can demonstrate proof of your income and affordability, you should qualify for competitive mortgage rates similar to those in permanent, full-time roles. Factors such as your credit score and deposit size will influence your mortgage rate more than your employment status.
What Documents Do I Need for a Self-Employed Mortgage?
When applying for a mortgage, self-employed individuals need to provide standard documents such as proof of identity, proof of address, and recent bank statements. Additionally, you'll need to provide:
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Two or more years of certified accounts, ideally prepared by a qualified accountant
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SA302 forms or tax year overviews from HMRC for the last two to three years
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Evidence of upcoming contracts if you're a contractor or proof of dividend payments if you're a company director
How Do Lenders Calculate Self-Employed Mortgage Earnings?
Lenders may look at salary, dividends, share of net profit, retained profit or partnership drawings when assessing affordability for a mortgage application
Tips to Improve Your Mortgage Chances
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Gather your SA302 forms to demonstrate consistent income
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Consider hiring an accountant to prepare your accounts for added credibility
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Save a substantial deposit to access more mortgage deals
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Boost your credit score by managing existing credit responsibly
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Be prepared to provide additional information if you haven't been self-employed for long
How Long Do You Have to Be Self-Employed to Get a Mortgage?
Most lenders require two to three years of accounts, but exceptions can be made if you previously held a similar full-time role. Even if you're relatively new to self-employment, you can still explore mortgage options with the right documentation and preparation.
Finding the Best Mortgage Deals for the Self-Employed
Securing the best mortgage deal is crucial, and working with a mortgage broker can simplify the process. Brokers have extensive market knowledge and can identify lenders likely to accept self-emp
Don't let misconceptions about self-employment hinder your homeownership goals. Contact Pivot Mortgages today to explore mortgage options tailored to your unique needs and take proactive steps towards realising your homeownership dreams. With our expertise and personalised approach, we're here to support you every step of the way.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We Can Help You
After exploring the various mortgage options available for self-employed individuals, we're here to guide you through the next steps. Whether you're a freelancer, contractor, or small business owner, our team is dedicated to finding the right mortgage solution tailored to your unique situation. Contact us today to embark on your journey towards homeownership with confidence.