Expert Guidance Every Step of the Way
Your property may be repossessed if you do not keep up repayments on your mortgage.
Eligibility Criteria for Self-Employed Mortgages
To secure a mortgage as a self-employed individual, most lenders require at least one year of trading history, though high street lenders often ask for two or three years. Some specialist lenders, accessible through brokers, may consider just one year of accounts, especially if you remain in the same trade.
For example, transitioning from being employed as a mortgage advisor to self-employment in the same role may qualify you for a mortgage after only one year. In the construction industry, contractors under the CIS scheme may also have additional options, though the standard rule is a minimum of one year of accounts.
FAQ'S
Can I get a mortgage as someone who is self-employed and a First Time Buyer?
The simple answer is yes you can. The same mortgages are available to the self-employed and employed. Over the years people have been nervous of the barriers to self-employed people, but just come to a broker. It’s absolutely fine.
How does getting a mortgage as someone who’s self-employed and a First Time Buyer work? Is it more difficult?
It has been difficult, especially through Covid, and there are still a couple of lenders that have extra checks in place.
In terms of how it works, it’s the same process as for somebody who’s employed. Lenders just use the income in a slightly different way. It’s not difficult – and certain lenders are better than others. A good broker knows where to go to make life easier.
How Lenders Calculate Borrowing for the Self-Employed
When calculating how much you can borrow, lenders typically average your income over the past two years. If your income fluctuates, they may use the lower figure to determine affordability. A steady or increasing income trend is advantageous as it demonstrates a stable and growing business.
Brokers can advocate on your behalf, often directly engaging with underwriters to explain your financial situation. Unlike banks, brokers have access to a wider range of lenders and can explore various options tailored to your unique circumstances.
The Role of Brokers in Securing Self-Employed Mortgages
A broker is invaluable for self-employed First Time Buyers, especially those with complex credit histories or fluctuating incomes. Brokers provide personalised advice, help improve your credit profile, and create plans to address obstacles, like low credit scores or insufficient accounts. With access to specialist lenders, they increase the chances of approval even for those with bad credit or unique situations. Starting early and maintaining organised finances will position you well to navigate the mortgage process successfully.
Vulnerable Customer
We understand that from time to time our clients may find themselves dealing with circumstances which could mean they are potentially vulnerable. For example, a change in health, caring for a family member or coping with the loss of a loved one. There are many different types of vulnerability, and what makes one person vulnerable might not affect someone else. When we are vulnerable, our need for financial advice may change. However, admitting vulnerability or seeking help can sometimes feel hard.
If this is something you would like to discuss with us, please ask for a copy of our support guide or download a copy here. This guide is designed to help explain vulnerability and the ways in which we might be able to support you. If you feel any of the circumstances in the brochure apply to you, please talk to us.
Joanne Gerrard2024-10-25A fantastic professionaland supportive service, providing timely, factual and relevant information. Appletree have made the process hasslefree and stressfree. Would 100% recommend.
Ashley Capstick2024-10-01Kathryn has been amazingly helpful with sorting out our Mortgage. Very responsive & insightful. Highly recommend
m r2024-10-01We have just used appletree for switching mortgages. Kathryn and Faye were both very helpful. Faye in particular was very helpful with dealing with a rather difficult solicitor and getting updates and moving things along, Thanks.
Emma Astley2024-09-26highly recommend!!! Kathryn was very helpful and responded very quickly. will definitely recommend Appletree Financial solutions to all my friends and family.
Martin Shipway2024-09-17I recommend Kathryn Haycock to anyone who requires advice and assistance with a mortgage. She is exceptionally efficient, helpful and diligent. Her level of communication with the client is fantastic and she goes the extra mile to make sure that the client gets the best deal possible!
Karen Holden2024-09-10Brilliant staff very professional and extremely helpful Mark has been fantastic, can't rate the team highly enough 5*
Nikolai Polakovs2024-09-08Kathryn at Appletree was so helpful with me and my partner we got recommended by someone she gave us brilliant advice on what to do next thankyou Kathryn.
Lyndsey Goo2024-08-28Kathryn took all the stress out of our remortgage and helped us understand the rates and options so we could make the best decision for us! Highly recommend
amy crook2024-08-06We have been with Apple Tree for around 5 years now, for finical advise, investing and loans. The team are lovely and always have a great response time either by email or phone.
