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Can Self-Employed People Get a mortgage?

The latest industry news and guides from Active Mortgages.

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The short answer is yes, self-employed individuals can definitely get a mortgage in the UK. However, the process may be slightly different than for those who are employed by a company.Here are five steps you can follow as a self-employed business owner to increase your chances of getting approved for a mortgage:

Step 1:

Get your financial documents in order. As a self-employed individual, you’ll typically need to provide more documentation than someone who is employed by a company. This includes one to two years of tax returns and financial statements, as well as proof of income such as bank statements and invoices depending on the lender. Make sure all of your documents are organized and up-to-date before applying for a mortgage.

Step 2:

Shop around for the lowest mortgage rate. Just like with any other product or service, it’s important to shop around for the most suitable mortgage rates and terms. Comparing interest rates from different lenders can be a very time-consuming process, especially when you may not meet their criteria, this is where an Active adviser can help save you time and money. Remember that a lower interest rate can save you thousands of pounds over the life of the loan.

Step 3:

Seek out specialist self-employed mortgage advisers. As a self-employed individual, it can be helpful to work with a mortgage adviser who has experience working with self-employed applicants. They will have a good understanding of the specific documentation and requirements that you may need to provide, and may be able to offer advice on lenders that are more likely to approve your application. Additionally, they will be able to advise you on the best mortgage products that are available for self-employed individuals, which may not be found in the general market.

Step 4:

Consider alternative lending options. If you’re having trouble getting approved for a traditional mortgage, consider alternative lending options such as a guarantor mortgage or a shared ownership mortgage. These types of mortgages may require a co-signer or a deposit, and they can be a good option for self-employed individuals.

Step 5:

Work on improving your credit score. A good credit score is crucial for getting approved for a self employed mortgage, regardless of your employment status. If your credit score is low, work on improving it by paying off any outstanding debts, making all of your payments on time, and limiting new credit applications.In conclusion, being self-employed does not mean that buying a home is impossible. With the right preparation and persistence, self-employed individuals can definitely get approved for a mortgage in the UK. By following these five steps, you can increase your chances of getting approved and take the first steps towards becoming a homeowner. Remember to be patient and persistent, and don’t be afraid to ask for help if you need it. With the right mindset and the right plan, you can make your dream of owning a home a reality.If you need help finding the right mortgage lender for your situation then please feel free to contact us today!

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Self Employed Mortgage Guide

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Book a call with one of our team to talk about your requirements.