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Self-Employed Mortgages: Everything You Need to Know

self-employed mortgage

If you're self-employed, you could be forgiven for thinking that getting a self-employed mortgage is a bit of a minefield. 

Tons of paperwork, terrible rates and most people get declined anyway, right!?

WRONG!

The fact is, that getting a mortgage when you're self-employed needn't be a hassle if you know how...

Who is Classed as Self-Employed?

There are many different forms of self-employment and each will be treated slightly differently when it comes to your mortgage application.

First things first though - who is classed as self employed? 

If you are a sole trader, a director or partner of a company and you have more than 20-25% share of the business from which you take your main income, then most lenders will consider you to be self-employed.

How to Find the Right Self-Employed Mortgage

Well, firstly, let's do a bit of myth-busting...  There's no such thing as a 'self-employed mortgage'.

*mic drop* 

You'll apply for the same mortgages as any other person - you'll just have to do it slightly differently because it's a bit trickier for you to prove your income than it is for someone with a contractual salary and regular payslips.

This means that to find your perfect mortgage, you can follow the same steps as anyone else! 🙌

Our top tip? ⬇️

Speak to a Mortgage Broker

...and we're not just saying that because we're mortgage brokers - seriously! 

A mortgage broker does this for a living. We understand what lenders are looking for, we know what the current best products out there are and we have access to lenders and products that you won't be able to get anywhere else.

Your mortgage is one of the biggest financial commitments you'll make - don't do it without speaking to an expert first. Here at BB, we offer completely free consultations where you can chat to one of our friendly advisers about your specific situation and we can help you to find the right mortgage - and make sure you have all the right paperwork you need to make your application a breeze.

We'd Love to Help You! Just Pop Your Details Below to Request a Call Back ⬇️

How to Get Approved for Your Self-Employed Mortgage

We have 3 top tips that we give to anyone applying for a mortgage, whether they're self-employed or not:

1) Check Your Credit Report

It's easy-peasy to check your report these days and it's well worth making the effort.  Your credit history will play a big part in a lender's decision making process so it's good to know what's on yours before you apply so you can avoid any nasty surprises.

2) Save as Big a Deposit as You Can

This one is just simple maths. The larger the deposit you pay, the lower the mortgage you'll need.  Not only that, but you'll generally get better mortgage rates with a big deposit so it's well worth saving as much as you can!

3) Make Sure You're on the Electoral Roll

Lenders will use the Electoral Roll as part of their verification process.  This will be part of any credit check and if you're not registered, your score will be negatively impacted.

If you're not sure whether you're registered or not, you can contact your local council to find out.

Now, as you're self-employed there's one more important step that you'll need to take before applying:

**Get your documentation ready**

What Documents Will I Need?

This will depend on the lender and product that you're applying for so always speak with your mortgage broker first because they'll be able to tell you all the documentation you'll need before applying. 

This list below gives you a good idea of the more common forms of documentation that you'll be asked to provide:

ID

Most lenders will ask for a form of photo ID such as your driving licence or passport. Make sure it has your current address on it!

Proof of Address

This can be trickier than it used to be as so many of us manage our affairs online these days. You will be able to use a council tax or utilities bill or a bank statement.

Limited Company Accounts

If you're the director of a limited company then lenders will require your last 2 years of accounts, signed by a qualified accountant.  

If you don't have 2 years of accounts then speak to a mortgage broker because they will be able to help you based on your specific circumstances.

SA302 Form

Lenders may ask for up to 3 years of SA302 forms from HMRC. Some may also accept your tax calculations on headed paper from your accountant.

It's important to note that there is no 'one size fits all' when it comes to applying for a mortgage when you're self-employed. Different lenders will ask for different things and that's why it's so helpful to speak to a mortgage broker.  We can come up with a solution that works best for you based on your specific circumstances.


We hope this guide has helped to put your mind at ease. Being self-employed doesn't mean you can't get a mortgage - or even that you can't get the same rates as everyone else.  By speaking with an expert, you can ensure that you find the best deals and that you have support with any paperwork.

We've helped hundreds of self-employed people get mortgages and we'd love to help you too.  If you'd like one of our expert advisers to give you a call then just pop your details below and we'll be delighted to support you!

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Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

2019-09-04T15:53:10+01:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

2016-03-22T17:24:36+01:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

2016-09-13T12:38:09+01:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

2016-09-13T12:43:22+01:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

2016-09-13T12:48:10+01:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

2016-09-13T12:49:06+01:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

13 hours ago

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