Self Employed Mortgages
Helping the self employed getting a Mortgage
Self employed mortgages enable those who own more than 20% to 25% of a business from which you earn your main income to get a mortgage. You could be a sole trader, company director, partner or contractor.
By the fourth quarter (Oct to Dec) of 2019, there were more than 5 million self-employed1 people in the UK, up from 3.2 million in 2000. Self-employment has contributed strongly to employment growth in the labour market, with self-employed people representing 15.3% of employment, up from 12% in 2000.
If you’re self-employed, it can be more of a challenge to get a mortgage because you’ll need to prove you have a reliable income. But getting a mortgage when self-employed is certainly not impossible. you should be able to access all the same offers as people on a regular salary. The requirements will be different though and be prepared to go through a few more hoops to get your mortgage.
To prove your income when you apply for a self-employed mortgage, you will need to provide:
- Two or more years’ certified accounts
- SA302 forms or a tax year overview (from HMRC) for the past two or three years
- Evidence of upcoming contracts (if you’re a contractor)
- Evidence of dividend payments or retained profits (if you’re a company director)