As a self-employed individual, you may have heard that you need to be self-employed for at least three years in order to qualify for a mortgage. However, this is not necessarily true. In fact, it is possible to get a mortgage after just 12 months of self-employment, provided you have a full 12 months proof of income and/or company accounts.
While this may come as a relief, it can be frustrating to hear the misconception that you need to be self-employed for three years in order to qualify for a mortgage. This is simply not the case and can be a deterrent for self-employed individuals who are looking to buy a home.
It’s important to note that each lender has their own criteria and requirements for approving a self employed mortgage application, and these can vary greatly from lender to lender. This is why it is so important to find a lender that is a good fit for your individual circumstances. With hundreds of lenders offering thousands of products, it can be overwhelming trying to navigate the mortgage market on your own. This is where a qualified mortgage adviser can be a valuable asset, they can help you find the right lender the first time around, increasing your chances of getting approved.
Furthermore, an adviser will have a thorough knowledge of the mortgage market and can advise you on the different products available that may be suitable for your individual situation. For example, some lenders may consider self-employed individuals with only one year of trading history, while others may require a minimum of two years. Additionally, some lenders may be more willing to consider applications from self-employed individuals with a lower credit score than others. A qualified adviser will have access to this information and can use it to help match you with the right lender.
Additionally, going to the wrong lender can lead to a “no” which could lower your credit score and make it harder to get approved by other lenders. This is why it is crucial to find the right lender the first time around and this is why an adviser can help. They can save you time and effort by matching you with the right lender, increasing your chances of getting approved, and helping you avoid unnecessary rejections.
The process of getting a mortgage as a self-employed individual may be slightly different than for those who are employed by a company, but it is still possible. It’s important to have all of your financial documents in order and to shop around for the best mortgage rates and terms. It will be beneficial to speak to our specialist self-employed mortgage advisers who can offer advice and guidance on the process.
So, if you’re self-employed and thinking about buying a home, don’t let the misconception that you need to be self-employed for three years hold you back. Speak to an Active Adviser today and take the first steps towards homeownership.
