What is a Self-Employed Mortgage?

Being self-employed can make it hard to get a mortgage. Here at Finance Advice Centre, we are whole of market advisors. This means we have access to all lenders to get you the best deal no matter what your situation.

What about the length of accounts?

We have the options available to gain a mortgage for you with less than 1 year’s accounts. This is possible if you are in a profession such as a doctor, solicitor, dentist, architect, or vet to name a few.

What counts as being self-employed?

You will be viewed as self-employed by lenders if you own more than 20-25% of a business from which you earn your main income. For example, you could be a sole trader, a contractor, or a company director.

How do you get a self-employed mortgage?

In theory when you are self-employed and looking for a mortgage you will have the same options as anyone else and you will need to pass the lender’s affordability tests like every other borrower. However, without an employer to vouch for your wage self-employed people need to provide much more evidence of their income than other borrowers.

What do you need to provide for a self-employed mortgage?

As proof of your income when you apply for a mortgage typically you will need to provide: Two or more years certified accounts (as previously mentioned we work with lenders who will accept your application with less than this but in general this is the standard) SA302 forms or a tax year overview from HMRC for the past two or three years

What are self-certification mortgages, and can you still get one?

Self-certification or self-cert mortgages were designed specifically for self-employed people and allowed them to self-certify how much they earnt within any given year and no need to provide any evidence.

Do self-employed workers pay higher mortgage rates?

Self-employed mortgages aren’t necessarily more expensive, as long as you can provide enough suitable information about your income you can qualify for the same mortgage deal as someone with a similar salary in a permanent, full-time job. The mortgage rate you receive is more likely to depend on how much deposit you have saved to put down and your credit rating.

How can you boost your chances of getting a self-employed mortgage?

As with any mortgage applications there are steps you can take to improve your chances of being accepted. These include: Save as much as you can for a deposit Check your credit rating and do what you can improve if it’s too low Correct any mistakes on your credit report

How can you find the best self-employed mortgage deals?

The best way to find a competitive mortgage is by shopping around as much as possible and comparing deals from different lenders. Remember when you are comparing deals to factor in the cost of any fees as you could find it is cheaper to go for a mortgage with a higher interest rate but a lower fee.

How does the set-up of your business affect your mortgage chances?

The structure of your business can influence how lenders view your income when you are applying for a mortgage. See how lenders view each of the three main business structures below.

How much can you borrow for a self-employed mortgage?

Each lender has different criteria and policy on how much they will lend to a borrower. In this case it doesn’t really matter whether you are employed or self-employed, as long as you meet the criteria set out by the lender you can typically borrow up to 4.5 times your annual income.

Is it more difficult to get a self-employed mortgage as a contractor?

Applying for a mortgage as a contractor can be quite tricky sometimes. In part this is because lenders will have different criteria on what defines a contractor, which will in turn dictate how much mortgage you can get. Typically, you are either an employed person working on a fixed or short-term contract, or you are self-employed and work through one main company.

Expert Mortgage Advice & Mortgage Products For Debt Consolidation

Let us put you in touch with expert mortgage advisors who will give you impartial advice and help you find suitable mortgage products for debt consolidation with bad credit.

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Buying a financial product such as a mortgage can be the biggest decision made in our lives. It is for this reason that impartial advice is critical from qualified advisors.

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Find suitable remortgage products for debt consolidation

If you are interested in remortgaging, but have bad credit in your history, don’t be deterred as you could still get a good remortgage deal. At Finance Advice Centre we can help you find a mortgage lender that specialises in helping borrowers with bad credit.
Remortgages for bad credit are the same as a normal remortgage except there are extra considerations around the risk, which can include a higher interest rate. Providers will only allow you to borrow what you are able to comfortably repay, so it is important to do your calculations and consider your options carefully with the help of your adviser.

You can remortgage for debt consolidation with bad credit so that all your existing debts become one affordable monthly payment. However, you should always think carefully before securing other debts against your home. This is because your property could be repossessed if you do not keep up repayments on your mortgage, or any other debt that is secured on it. You could also use a bad credit remortgage to raise some extra cash for pretty much any other reasonable purpose e.g. home improvements.

What do you need to consider before remortgaging with bad credit?

Can I get a better deal if I remortgage? – If you have bad credit history, you might be offered high interest rates to offset some of the risk to the lender
Can I afford the repayments for the full duration of the mortgage? – If you miss a payment you could be charged extra fees and interest and your credit score could be impacted
Do I want a fixed-rate or variable mortgage? – You should look at the pros and cons of both types of mortgages to see which one would suit you better
How flexible do I need to be? – You should decide if you need extra features like payment holidays, incentives like these will often come with higher interest rates and/or fees
Are there any applicable fees? – Application and arrangement fees are often payable when you set up a new mortgage. Also, check if you will be faced with early repayment charges by your current mortgage provider for leaving early

What other criteria will lenders look at for a remortgage?

Each provider will use their own guidelines when considering mortgage applications, but they tend to consider criteria like:

Employment status
Income
Affordability
Payment history
Loan-to-value-ratio

Get in touch with Finance Advice Centre today to get personalised advice from a specialist adviser and get the best remortgage for debt consolidation with bad credit deal from the most suitable lender for you as well as guidance through the application process. Framing your application in a positive light will give you the best chance of being accepted by the lender.

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.

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One of our Advisors will then find out what you’re looking to do, discuss your options and answer any questions you may have.

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Your Advisor will find the best option for you and help arrange things. You then sit back and relax while we do the rest.

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Choosing a financial product or service, such as a mortgage, remortgage, loan or insurance can be daunting and your choice is a decision you need to get right. For this reason, it is vital that you get impartial advice from competent and qualified advisors. Whether you are a first-time buyer, looking to remortgage, hoping to remortgage or even buy a property to let, needing a loan or insurance this is where our advisers excel.

Be reassured that our aim is to guarantee reliable financial advice appropriate to any individual that makes contact with us. Through our network of contacts, we have access to thousands of financial products, from mortgages to loans to insurance, so we are confident that we’ll find one to suit you.

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