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 & Mortgages For Those With Fair Credit Score

Let us put you in touch with expert mortgage advisors who will give you impartial advice and help you find low % mortgage products when you have a fair credit score.

Expert service

Highly Rated

No credit search conducted

Working with leading lenders ...

We work with high street and other lenders so you’ll get access to suitable deals that you may be able to apply for.

About us

Why use us?

From the information you provide to us, our experts will search the market and find the most suitable products for you. If you are happy with the product on offer, we will handle all the necessary paperwork for you, including any relevant applications, to ensure that everything runs smoothly for you.

Quick service

From just a few minutes completing some basic information, we will quickly search for suitable financial products for you.

Expert advice

We’ve helped thousands of customers secure financial products and service so you know that you are in capable hands.

Reduced stress & time saving

Choosing the right financial product is time consuming and can be stressful, so remove much of this by putting it in the hands of one of our financial experts.

Reliable service

Whatever type of financial product or service you are looking for, our service is reliable and always matched to your own personal circumstances.

Satisfaction guaranteed

Whether you’re looking for Mortgage Advice, Loan Advice or Insurance Advice or any other financial product or service, we can help you…

“Did a great job helping us with our mortgage. I would recommend!”

Rob Searcy

See more reviews

So ... how can we help?

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.

First Time Buyer Mortgages

Bad Credit Mortgages

Self Employed Mortgages

Remortgages

Buy-to-let mortgages

Expat Mortgages

Find a suitable mortgage deal

Securing a mortgage with a fair credit score means you can likely get a competitive deal, such as those with lower interest rates. However, credit scoring is so broad that what one credit reference agency deems as a poor score, another could view it as good.

So, what you think is a ‘fair credit score’ could still lead to your application being turned down, if you use a credit agency that puts your score in the ‘poor’ category based on their own criteria. By speaking to an experienced adviser like our team at Finance Advice Centre, you can use our help and expertise to find out which providers offer the most suitable deals for you and will view your credit score more favourably, increasing your chance of securing a mortgage.

Can you get a mortgage with a 600-credit score?

Maybe, again it will depend on the credit reference agencies being used as well as the mortgage provider you go through. For example, if you have a credit score between 561 and 720 with Experian (the largest credit agency in the UK) it would be considered as a poorer credit score than normal. Therefore, with this Experian score you could get a mortgage, but it is likely that you will have to pay higher interest rates.

However, if you check your credit score using Equifax or TransUnion and it is 600, you will be seen as in a good position to apply for a mortgage with this score. Also, keep in mind that each mortgage company will have its own lending policy, so some lenders will be more or less concerned by different parts of your credit profile.

All credit providers are required to be authorised and regulated by the Financial Conduct Authority.

What credit score do mortgage lenders use?

As previously mentioned, the most commonly used mortgage credit scores are the FICO scores that you get with the UK’s main three credit reference agencies: Experian, Equifax, and TransUnion. Mortgage providers will usually look at your credit score from all three of the CRAs when you apply for a mortgage. If a borrower has three different scores according to each scoring system then they will use the middle credit rating to assess your application. If two credit agencies agree on your credit score though, the mortgage lender will just use that credit rating in their assessment.

Our approach - and how we do it

Enquire

We love speaking with our clients. Either give us a call or fill in one of our contact forms. Remember, we love a challenge!

Discuss

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

Relax

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

Ready to assist you.

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.

How to improve your credit score

Even if you have a fair credit score, taking steps to boost it can only have a positive effect on your chances of being approved for a mortgage. Having a higher credit score will also mean that you don’t need to pay as much in interest or as a deposit. Simply making small improvements to your financial behaviour can have a positive impact on your credit score.

Reduce your credit card debt and be responsible in your credit card use
Put your name on the electoral roll if you are not on it already. It is a quick process and shows stability whilst helping credit agencies confirm your personal details
Pay off credit card loans and utility bills on time
Avoid going into your overdraft on credit cards
Check the information on your credit file, this will give you the chance to correct any errors due to fraud and remove past financial partners who could have been affecting your credit score
Only apply for credit cards and loans that you really need. Making a lot of applications for credit at once will damage your credit score because it shows you are not in a stable financial position.

Contact Finance Advice Centre today for further help about applying for a mortgage with a fair credit score, or any other types of mortgages that you could be interested in. Our expert advisers will help you find and apply for the mortgage that will best fit your financial circumstances.

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.

See what our customers think ...

Emma Griffiths

I would highly recommend the mortgage advice service Alice Hale was amazing throughout she is a credit to your organisation and helped us secure our dream home

Emma Weaver

We had a long journey buying our first home together and recent pandemic events didn’t help matters. Every step of the way, our advisor Steve was supportive, positive and we had every confidence in him. He was able to arrange a good deal for us and we were able to move into our dream house this autumn.

Joanne Widdowson

I used George from the finance advice centre to get my mortgage, and he was nothing but amazing! Talked me through every step, always easy to get hold of ! And got me a brilliant product I would highly recommend him, just brilliant 5 stars from me

What a Fantastic Service from start to finish. Great customer support from Ben Patten & Joe Frayne, superb product knowledge and exceptionally responsive to emails/calls, we can 100% recommend the Finance Advice Centre Ltd , they got us a great deal on a mortgage with suited life insurance, especially during this very difficult Covid 19 time ……

Ian Stamp

From start to finish, Greig and Emily were very helpful with our mortgage application. The advice Greig gave us was very clear and informed. They were always available either by phone or email to answer any questions we had. The whole process was made a lot easier because of the work they did. Would thoroughly recommend

Ross Nightingale

Let us do the work of finding your mortgage

We’ll put you in touch with impartial advice from an expert mortgage advisor who will help secure you the best mortgage deals available.

Find my mortgage specialist