Self-Employed Mortgages
Experience a mortgage process that acknowledges your entrepreneurial spirit while working in your unique way.
At SAM Mortgages, we specialise in self-employed mortgages. Whether you are a freelancer, contractor, sole trader, or in a partnership, we provide solutions that reflect your multiple income streams and help navigate the journey into home ownership.
Your home is at risk if you don’t keep up with repayments on your mortgage.
We may charge for mortgage advice. The fee you pay will depend on your circumstances. The fee payable will be up to 1% of the amount borrowed. A common fee is 0.3% of the amount borrowed, but this may vary according to your circumstances.
Self-Employed Mortgages Explained
The home-buying process can feel more complex if you are self-employed compared to a traditional employee. This is primarily because lenders would often look for more proof of your earnings for comfort around affordability.
We understand at SAM Mortgages, and we will simplify this process for you. We have helped countless self-employed clients obtain mortgages, making sure we show your financial profile in the best possible way to mortgage lenders.
Definitely. Freelancers and contractors may find they receive income that does not follow a predictable pattern month to month or project to project. Though this can make ’standard’ mortgage applications difficult, there are specialist mortgage products available to help make a mortgage happen for you.
These mortgage products are designed with your style of work and often varied income streams at the forefront of the product, which gives lenders the full representation of your overall fiscal capabilities.
Mortgages for Single or Business Partnerships
As a sole trader that is also worked in a business partnership, you may also be shown a different set of lending circumstances. Your income may not fit neatly inside the typical required criteria, yet there are mortgage products available for applicants like you.
These products take into consideration your business structure and financial history and ensure that you are assessed in a fair manner, rather than opting for a like-for-like assessment for someone who is in employment and on a salary.
Documentation Requirements for Self-Employed Mortgages
When applying for a self-employed mortgage, lenders generally require additional documentation to outline your financial position in the previous and current tax years. Documentation usually requested includes one of the following:
Tax Returns – Usually a 2 or 3-year history.
SA302 Forms – Demonstration of the income you have declared to HMRC.
Business Accounts – Documentation to illustrate consistent income.
Proof of Income – Supporting measures such as bank statements, invoices or contracts.
Documentation of Identification – Such as a passport or a driving licence.
Proof of Residency / Address – For example, a utility bill within the past 3 months.
Having this documentation prepared in advance can assist in speeding up the process.
Helping the Self-Employed Step Onto the Property Ladder
At SAM Mortgages, we are passionate about helping self-employed business owners, contractors, freelancers, and entrepreneurs find a way to overcome the obstacles of self-employed mortgage applications.
Our team puts time and effort into knowing your financial situation and the construction of your business, presenting the application to lenders in the correct manner and finding appropriate products for your situation. With us supporting you, being self-employed is no longer a barrier to obtaining a mortgage; it becomes an additional part of your success story.
– Call us today on 01604 261685 and let’s start planning your next move.
How Can I Improve My Chances of Gaining Approval?
When it comes to completing a mortgage application as a self-employed applicant, it is all about the preparation. Here is some practical information to improve your chances:
- Keep a full financial record of your business so you have documents which can support ongoing money in.
- Keep your credit score strong by managing debt and keeping on top of checking your report regularly.
- Try to save for a higher deposit, so that you can improve your application.
- Speak to a specialist broker, ideally someone like SAM Mortgages.
- Advise them fully, and they will take care of the rest.
- Maintain a steady income where possible and avoid large fluctuations where possible.
Frequently Asked Questions
Who can apply for a self-employed mortgage?
Is there a minimum length of time you need to be running a business?
Will having an unstable income mean you won't be accepted?
Will I be able to borrow the same amount as someone in full-time employment?
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How much do you need?
You can use our online mortgage calculator for an indication of how much you can borrow and how much you might need for your deposit. Again, please keep in mind, this is just a guide – get in touch with one of our mortgage specialists today for accurate and tailored advice.
