Expert Self-Employed Mortgage Advice & Products For Those With Bad Credit

Getting a mortgage when you are self-employed can be more difficult, with bad credit as well, it adds another layer of complexity to the case. However the situation is not impossible, and if you work with one of our expert advisers at Finance Advice Centre you will get a personal service so you can hopefully find the most suitable products for your own circumstances. Having that extra bit of help and guidance can give you a significant advantage when submitting your application for a mortgage and it could ultimately set you up to be successful.

There are mortgages available for some self-employed people who have bad credit, and getting professional advice before you apply is highly recommended, though accessing this help does not always guarantee that you will be able to get a mortgage. It could be that you need a specialist provider who is accepting of risk, since you fall into two quite niche categories. The level of risk involved in a mortgage product will come down to a number of factors including:

• How long you have been self-employed for
• The cause of your bad credit
• The situation surrounding your bad credit
• How much deposit you can put down
• How closely you meet the lender’s affordability criteria

Getting the most favourable interest rates on your mortgage product is often a case of matching the level of risk to the lender who is willing to accept it, though it is worth noting that not everyone will be able to get a suitable mortgage.

As a self-employed individual, the criteria you are required to meet is not really different from customers in full-time employment, but the way in which your income is assessed will be.

The majority of lenders will want you to provide 2-3 years of accounts or tax calculations. It could be possible to find a provider who will accept 12 months of accounts, depending on how much extra risk your bad credit adds to the mortgage product on offer.
It will help your application if your accounts show steady income during the years they cover, as fluctuating earnings could cause concerns with the provider. If your income is a bit irregular, a strong track record in the industry you trade in could help to offset some of the risk.

Lowering the risk

If you are worried that your status as a self-employed person alongside your bad credit history could make it more difficult to get a mortgage, remember that there are things you can do to lower the level of risk and to boost your suitability as a borrower. This includes:

• Putting down extra deposit – a lot of providers prefer customers to provide at least 10-15% deposit but if you have bad credit, it is recommended that you put down extra so you can access better rates
• Declaring at least 3 years of accounts – the more accounts you have that can prove your income the better. Having a minimum of 3 years’ worth is likely to give you access to a wider range of mortgage products because there will be more lenders you can approach

Speak to Finance Advice Centre today for specialist help and guidance on your bad credit self-employed mortgage application.

As a mortgage is secured against your property, it may be repossessed if you do not keep up the mortgage repayments. Think carefully before securing other debts against your home.