How Long do You Need to be Self-Employed to Get a Mortgage?
Although the majority of lenders require two or three years of accounts, there are lenders that accept self-employed people who have only been trading for 12 months.
Self-Employed Mortgage Advice & Tips
To help maximise the chances of securing your mortgage as self-employed, here we’ve listed and explained some of our top tips.
Ensure all accounts are up to date & get finances in order
The most competitive rates tend to only be offered to those with exemplary credit records. Paying off any debts, closing dormant accounts, getting on the electoral roll and making sure there are no incorrect entries on your credit report will help to improve your credit rating.
Get in touch with a professional mortgage broker
Not all lenders have the same criteria, which is why it can be incredibly useful to speak to an experienced mortgage broker. They’ll know which banks and building societies are most likely to accept/have stricter lending criteria so will be able to match you with a suitable lender.
Here at The Mortgage Heroes, we have access to the whole of the mortgage market and specially negotiated rates through our network Quilter Financial Planning Limited. We’re experts in getting the self-employed the right mortgage – contact our team of heroes today to get started.
Utilise an accountant
Many mortgage lenders prefer self-employed mortgage applicants to provide accounts that have been prepared by a chartered certified accountant as it enables them to be sure of your reliability. In fact, some lenders won’t consider applications from self-employed individuals who don’t have up-to-date accounts signed off by an accountant.
Make more than the minimum payment
Making just the minimum payments can be a sign to the lender that you’re in financial difficulty. If you’ve used a high % of your credit card, you’ll likely have a lower credit score so try to make more than just the minimum payment.
Save for a bigger deposit
Like any other property purchase, the bigger the deposit you’ve got, the best chance you have of securing a mortgage at a good rate. A deposit of at least 10-20% is required by most lenders.