This document discusses self-employed mortgages and provides tips for a successful application. It notes that self-employed individuals often hesitate to apply due to a belief it is harder, but that many mortgages have been arranged for self-employed people. The top tips include knowing your budget and credit score, having sufficient deposit, understanding documentation needs, timescales for trading history, and contacting an advisor early in the process. Self-employed status is not a barrier to getting a mortgage.

1. Self-employed Mortgage Advice
Why are self-employed people put
off applying for a mortgage?
Self-employed individuals often hesitate to apply for a mortgage. There seems to be a
genuine belief that buying a house and applying for a mortgage is harder if you’re self-
employed. Also, some self-employed people are likely to be operating with the mindset
that they’ll automatically be rejected, so why bother trying?
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2. Our advisers here at Right Mortgage UK have arranged a multitude of mortgages for self-
employed individuals: and some of them quite de nitely expected to be unsuccessful
when we started the process. So we wanted to put together a guide for you of what to
expect when applying for a self-employed mortgage; because if we can help other people,
then we can probably help you too.
What can we do to help?
Here are our top tips for a successful self-employed mortgage application.
1. Know what you can a ord to pay back, and work out in advance what your monthly
mortgage spend should approximately be. No lender is going to approve you for a
mortgage that costs more than you can a ord to pay back, so work out in advance
what a comfortable monthly repayment amount would be and then speak to our
advisors who will look at what borrowing amount that equates to in mortgage terms.
2. Know your credit score, and look at ways to improve it pre-application. All of the
online credit score sites contain tools that show you how to improve your credit
score, and it’s worth investing some time a few months ahead of a mortgage
application to make sure your credit score is as good as it can possibly be. This can
greatly improve your chances of getting a good mortgage o er.
3. Know your deposit level. A bigger deposit will not only get you access to a wider
choice of houses, it will also give you access to a wider pool of mortgage lenders
too.
4. Know what paperwork you will need to show. Self-employed workers are sometimes
asked by mortgage brokers and lenders to provide more proof of income than
employed workers: however, the information you’re asked to provide is neither
di cult nor time-consuming to nd. You’ll be asked to provide the standard
information: proof of ID, proof of funds for your deposit, bank statements, utility bills,
payslips if you get them; and you’ll also be asked to provide your HMRC tax returns
(Your SA302 forms) and if you’re looking for a Limited Company Director mortgage;
your submitted accounts and possibly a letter or proof from your accountant (this

3. can be done during the application though so the accountant knows what’s
expected from them, depending on the lender that’s chosen.
5. Know your timescales. By which we mean, know how long you’ll have to have been
trading as a self-employed individual/entity for. A typical rule of thumb here is that
you’ll need at least one year’s accounts, and to have access to the maximum possible
number of lenders you’ll need at least three years accounts. Bear in mind that you
will be able to start talking to our advisers before your rst year ends to start getting
information together and then show your earning potential to that year end.
6. Know your own mind. If you’re serious about nding a mortgage because you’re
ready to buy a home, we’re serious about helping to make sure it’s the best possible
o er for you. Our team of trained professionals are only a phone call away – ask for
our input as early as possible in the process, and let us guide you through the
journey.
As a self-employed individual, whether you’re a sole trader or company owner or whether
you work on a contract basis for one or more main suppliers, you’re every bit as able and
likely to get a mortgage o er as any employed borrowers out there.
Don’t let your self-employed status put you o or delay you achieving your dream of being
a homeowner. The application process is no more complicated than for an employed
borrower, and, dependant on the length of time you’ve been trading on a self-employed
basis for, you’ll nd that you’re likely to be eligible for pretty much the same product
choice as anyone else too. (NB – credit score, deposit level, proof of income etc will all be
required to help you achieve this).
By Chris Riley | December 20th, 2019
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