This guide was last updated 24 April 2023
In this guide, we will talk you through some of the ways you can maximize your borrowing potential and get access to a wider range of lenders for your self-employed mortgage. The key thing to keep in mind in any mortgage application, is making yourself look like an attractive candidate to lenders. We will give you some tips on how to do this, but it is always recommended to seek professional advice.
Firstly, let’s define what a self-employed mortgage is. In truth, a self-employed mortgage isn’t any different to a standard mortgage! The only real difference is in how we present your application to the lender to show that you are an attractive candidate. It is so important your advisor understands the self-employed market and how you are paid so that you have the same options to you as an employed applicant. We do this by showing that your self-employed business is as financially reliable as an employed applicant with a regular salary.
We always recommend that you speak to an advisor if you are unsure, as they will know which lenders best suit your business structure.
We recommend that you provide the following documents when you are ready to speak to an adviser. Although they may not be required for your application, these will help your adviser to understand your business and find you the best possible lender.
The main thing to keep in mind is that you need to look as attractive as possible to mortgage lenders when you apply. As well as preparing and providing the above documents, here are some other key tips to improve your prospects!
Yup, you read that right! Keep your LinkedIn profile and history updated prior to your mortgage application, as we are seeing more and more underwriters checking the platform for information as well as checking CVs.
Lenders will check your credit history as part of your application, so it’s a good idea to check your credit report. Don’t be alarmed if you have had some previous credit issues! We work with lenders who take a commonsense approach to applications and so don’t always factor in your credit score. Even so, it’s very important to disclose as much information as possible to your advisor to allow us to provide you with the best support.
Three common credit references agencies that allow you to check your report and offer some useful tips are Experian, Equifax and TransUnion. Checkmyfile cover all 3 of these credit reference agencies.
If you have money in an emergency fund this can show lenders that even if your business has a bad month, you will be able to keep up with your mortgage payments but again it’s not essential.
The more deposit you put into the purchase up front, the less risk a lender will see in your application. There are currently 95% mortgages available for Employed and Self-Employed clients and even 100% with some lenders who offer family assisted mortgage options
Any existing credit may impact the level of borrowing; however, it is always important to seek expert advice before clearing any debts as this may not always be financially best for you.
You can also see our guide on how to get a contractor mortgage which has helpful advice on mortgages for freelancers.
It is never too soon to get advice. Whether you are considering buying now or in the next few years, your Coreco advisor can support you to ensure you are prepared and aware of the best possible options for your unique position. Even if you have only recently become self-employed or are considering going self-employed, speak to an advisor today to find out the next steps on your journey to becoming a homeowner.
The beauty of working with Coreco is that we have access to the market and work with clients from a range of circumstances. We have seen it all! Even if you aren’t sure, get in touch with us to discuss your self-employed mortgage options and fill out the form below to arrange a no-obligation appointment.
Your home may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495