Five things to get in order if you’re self-employed and looking for a mortgage

We’ve briefly discussed self-employed mortgages in our How it works post. [Click here to read our previous post]

It may seem obvious but there are extra things that you should have in order if you’re self-employed and considering getting a mortgage.

1 – Work history.

The majority of lenders are happy to provide self-employed people with mortgages provided they have a track record of work over the last three years and will be more lenient if you’ve been self-employed for the longer the better.

If you have been working for yourself for less than three years don’t worry though, most lenders will often insist on accounts being prepared by a chartered accountant, the services of which are readily available. Find out if we can help you by getting in touch using the info below.

If you’re unsure how much info you need start collecting as much data as you can from this point forward. The more info you have the better, even if it seems excessive; at the end of the day the more you have the more flexible the lenders may be.

2 – Complete your SA302 tax calculation.

A SA302 form is an HMRC form in which you can provide a level of proof for your earnings over the last four years. This form works in tandem with a Self-assessment Tax return.

You can find these forms here https://www.gov.uk/sa302-tax-calculation

Speak with one of our mortgage advisors and they will guide you through this process.

Note: A SA302 form isn’t a necessity for many lenders but having the information that this form lenders can help you when speaking with them.

3 – Check your credit file.

 Your credit history, as with all borrowing, is a good representation of you as a customer. It should go without saying then that a healthy credit file can help you get better rates and have a stronger relationship with your lender.

There are many services online on which you can check your ratings. If you have a lower number there are ways to improve it and get back onto that preferred line.

4 – Prepare a baseline deposit.

 Behind the small differences that you will find with a self-employed mortgage, you will see that what you are looking to achieve is the same as any other mortgage. And as such, you should start building the largest deposit you can.

Having a large deposit available will help to convince your lender that you are going to be a responsible customer.

5 – Get a mortgage advisor.

 You may see it as an expense you can avoid but a mortgage advisor can offer an experienced, well trained and helpful advise for you and your journey to home-ownership. They will help you get your ducks in a row and walk you through any issues you may run into. When it comes to rates and terms and conditions they are well versed and are paid to make sure you reach the best outcome.

Contact The Mortgage Specialists at 0333 666 666 3 and we’ll help you find the best local mortgage advisor.

Use our online form and we’ll get in touch with you.

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