The number of self-employed people in the UK now accounts for 14% of the UK workforce10, two thirds of whom are finding it difficult to get a mortgage. While it can be challenging, it’s certainly not impossible and with the correct preparation, your application will have a much better chance of success.
INCREASE YOUR CHANCES
If you haven’t been in business long and your income is sporadic you may already feel on the back foot, but don’t despair, there are a number of ways to plan for success. These include making sure your business accounts are up to date and prepared by a qualified accountant and saving hard for a decent deposit.
Typically, lenders will ask for three years’ worth of accounts as proof of income before making an offer, although there are a few that might lend on less. Lenders need to understand how profitable your business is and will want to know its net profit and feel confident that you will be able to make the repayments. Be ready to have your personal and business bank statements scrutinised, plus your monthly bills, how much you spend on socialising, credit card bills and loan repayments, as these will all be carefully considered.
GET IN TOUCH
We understand the difficulties of getting a mortgage when you’re self-employed – but it’s not impossible. We can help you to find more flexible providers who are open to lending to self-employed people. Get in touch.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.