At Protection and Investment, we very much
believe that if you fail to plan, you plan to fail.
We recognise that the path to homeownership can feel distinct and even challenging for those who run their own businesses. Our goal is to provide you with professional expertise and support to address any concerns you may have. We understand the emotions tied to this significant life step, and we’re here to ensure that the process is not just seamless but also rewarding.
It’s a common misconception that self-employed individuals are limited to higher mortgage rates. However, this isn’t accurate; being self-employed shouldn’t automatically mean paying more for your mortgage. If you can demonstrate your ability to manage repayments, you should be eligible for the same mortgage rates as those in permanent, employed positions. You have access to the same variety of mortgage options as any other applicant. The only distinction is that you’ll need to furnish additional proof of your stable income to reassure your lender about your repayment capacity.
There are many more types of mortgages. If you have any questions and would like to learn more about the types of mortgages available to you, contact us today for a free initial meeting.
Lenders will want to see a number of documents when you apply for a mortgage.
Check your credit score: Checking your credit score can help show you where you currently stand, giving you an idea of your chances.
Pay bills on time: Paying your bills on time and by Direct Debit is important. This proves to lenders you are reliable and pay on time.
Avoid getting into debt: Debt is not ideal. It’s money that needs paying elsewhere and not towards the loan they would be giving you.
Avoid large purchases: Large purchases gives you less money for your deposit and leaves you with less to use after your purchase.
Applying for a mortgage as a self-employed or company director can be a daunting experience. At Protection and Investment, we’re expert Mortgage brokers and advisors, who find helping the self-employed and company directors a highly rewarding process. We’d love to help you secure your home. Book a free initial meeting with us today.
Yes, being self-employed does not prevent you from getting a mortgage. You’ll apply for the same mortgage products as employed applicants, but lenders will look more closely at your income to ensure it’s stable and sustainable.
Most lenders prefer at least two years of accounts or tax returns (SA302s), although some may consider applicants with less history depending on their circumstances.
This depends on your business structure.
Lenders often average your income over multiple years to get a clearer picture.
It can be slightly more complex, mainly because income is often less predictable than a salary. However, with the right documentation and preparation, many self-employed applicants are successfully approved.
No, not necessarily. If you can demonstrate a reliable income and have a good credit profile, you should have access to the same mortgage rates as employed applicants.
Typically, lenders will ask for:
Additional documents may be required depending on your situation.
It may be more challenging, as many lenders prefer a track record of income. However, some lenders will consider applications with less than two years of accounts, especially if you have strong earnings, a good deposit, or previous experience in the same industry.
Yes, joint applications are common. Lenders will assess your combined income and affordability, regardless of whether one or both applicants are self-employed.