You are considered self-employed if you own more than 20-25% of a business from which you earn your main income.

As a self-employed worker, getting a mortgage or remortgaging with some of the main high-street lenders can be challenging but it is doable. This is because you are seen as a riskier borrower, with a less reliable income. As a mortgage broker with access to a comprehensive panel of lenders, we can look at high street lenders and the more specialist ones, depending on your needs. 

If you are self employed, you will be looking at the same mortgage products that are available to everyone else. There is no separate product just for the self employed. What tends to differ is the evidence lenders ask for, so they can see that your income is stable and that you can afford the borrowing.

Lenders will typically ask you to show proof of your income. This may include two or more years of certified accounts, evidence of upcoming contracts (if you are a contractor), evidence of dividend payments or retained profits, and recent SA302 forms, tax returns or your tax year overview from HMRC. They will also usually ask for bank statements and will check your credit history. Requirements vary between lenders, and approval is never guaranteed, so we will talk you through what applies to your circumstances.

Here are some additional tips for self-employed borrowers:

• Start your application early. This will give you more time to gather the necessary documentation and improve your chances of approval.
• Get pre-approved for a mortgage before you start looking at properties. This will give you an idea of how much you can borrow and what your monthly payments will be.
• Be prepared to negotiate. Don’t be afraid to haggle with the lender to get the best possible deal.

With careful planning and preparation, you can successfully get a mortgage or remortgage as a self-employed borrower.   You can reach out to us via the contact form or use the chat icon on the right hand side of the screen, if you would like to see how we can help you move home soon.