Self-Employed Mortgages: Frequently Asked Questions

Securing a mortgage when self-employed

If you’re one of the 4.3 million workers currently self-employed in the UK, you’re no doubt enjoying the many perks that come from being the master of your own destiny. But being self-employed brings with it many other challenges and securing a mortgage can be one of these. Whether you’re a first time buyer or remortgaging, the prospect of securing a mortgage may fill you with a certain amount of anxiety. 

You can make the process a whole lot easier by being prepared for what’s ahead. Our handy Guide to Self-Employed Mortgages tells you everything you might need to know about the process - from what classifies as ‘self-employed’ to the impact of retained business profits.

Man working in an industrial workshop.

If you’ve read that and still have questions, you’ve come to the right place. Our team of mortgage advisers have pulled together some of the most commonly-posed queries from self-employed homebuyers along with some helpful advice and guidance. Alternatively, please give our friendly team a call on 0800 781 4311 or get in touch via our online form.

 

 

Can I get a mortgage without 2 years’ paperwork?

The short answer is yes.

The longer answer is that for most high street lenders, there’s usually a requirement for self-employed workers to provide a paperwork trail of taxes, account details and dividend documentation from the past two or even three years. Anything less than this usually causes some difficulty for lenders when it comes to determining affordability.

However, here at Furness Building Society, while less paperwork can make the process a little less straightforward, we always offer an individual and fair assessment of your finances and circumstances. Unlike many lenders, we don’t have a ‘checkbox’ approach to applications. Instead, we assess every case with a flexible approach, to fully understand your unique circumstances before making you an offer.

Can I get a mortgage with an irregular income?

Will the current climate affect my chances of getting a mortgage?

How do I make myself more attractive to lenders?

When it comes to self-employed mortgage applications, it can sometimes feel as though your fate is solely in the hands of the lender. But there are a number of things you can be doing - or avoiding altogether - to take back a little control and help you secure your mortgage offer...

It’s all about the credit rating

From your mobile phone to your Netflix membership, your credit score is a digital footprint of everything you purchase and subscriptions you keep. It is also a record of any missed payments on said subscriptions and bills. It’s really important for you to keep a close eye on your bills and ensure regular payments are made on time. This will avoid any red marks being made against your name which can affect your chances of getting a mortgage.

Honesty is always the best policy

Getting your ducks in a row

Is it harder to get a mortgage if you’re self-employed?

It shouldn’t be harder for you to get a mortgage, provided you follow the steps above and plan your application at the best time. 

Unless you plan ahead, the map to a mortgage could result in you kicking the can down the road for some years whilst your application falls into shape. Aim to put your case forward at a time that offers you the best outcome and the shortest process time.

For example, if your business goals involve shaking up the structure or changing your employment status (e.g. from ‘Self-Employed’ to ‘Business Partner’) it's always best to hold off your mortgage application until this settles. 

Lenders will require some history to your profit-making and personal income from the business, so it would be wise to leave at least a year after restructuring before you set sail on a mortgage deal.

Next steps

If you or your partner are self-employed and are looking to get on the property ladder - or even find your next dream home - please get in touch with our team of advisors. We’re on hand to discuss your mortgage plans either in person in branch or over the phone on 0800 781 4311. More information can also be found on our self-employed mortgage page.