Getting a mortgage when you’re self-employed is actually much the same as getting a mortgage when you are an employee. The only real difference is how you go about proving your income. If you are in employment, you will be able to show P60s and wage slips. If you are self-employed then you will need to show tax documents.
The fact that the self-employed do not have a guaranteed income is not necessarily the huge hurdle it might seem. The fact is that modern lenders are well aware that there is no such thing as a “job for life”. This means that, in reality, some people in self-employment might actually have far more financial stability and security than some people in employment.
It is fair to say that people who are new to self-employment will probably find it more of a challenge to get a mortgage than people with three or more years of trading under their belt. The same, however, holds true of people in employment. Those who are at the start of their careers may find it more difficult to get a mortgage than those who can demonstrate a steady work history.
This is not necessarily an insurmountable barrier. For example, if you can put together a large deposit, a lender may be more likely to look favourably on your application.
Please contact us to see how we can help.