If you are self-employed and need to arrange a mortgage, you could be wondering where to start.

It could be that your income is irregular and you may not have three years worth of accounts or you may even have two good years, one bad year and been turned down by the high street lenders.

Thankfully, you will be pleased to hear that being self-employed does not need to hold you back when obtaining a mortgage.

Proving Your Income

Whilst there is no such thing as a ‘self-employed mortgage’, there are a couple of other things you will probably need in order to prove to a mortgage lender that you have a reliable income.

This is one area that using a broker can make a big difference as your mortgage broker will know in advance what lenders will require. This means that in preparation for your application, they will be able to review your documents and recommend the most appropriate product.

The alternative to using a high street lender is that you may find they are not as flexible or understanding when it comes to a mortgage with irregular income.

Preparation Is King

Preparation is king when it comes to obtaining a mortgage if you are self-employed. This doesn’t mean that you need to have three years worth of accounts as many mortgage lenders do not just look at the numbers when approving a mortgage, many other different factors play a role.

Check Your Credit Score

One thing to review is your credit score. Whilst there is no specific score you need in order to obtain a mortgage, having a better score can lead to you having a better rate, for example.

You can use free services such as ClearScore, Experian or Credit Karma (just to name a few) and a broker will be able to advise you here, however there are a number of things you can do to improve your score and essentially save money!

Ensure Your Accounts Are Up-To-Date

Running hand-in-hand with improving your credit score is making sure that your accounts are up to date. For example, making sure your bills and payments are cleared on time each month will help you avoid your score decreasing.

In addition, if you are operating through a limited company, having up -to-date accounts may be able to help support and strengthen your application (particularly as you may pay through a combination of low salary topped up with dividends).

Why Use A Broker?

We have already mentioned how using a broker is helpful because they will know in advance what lenders are likely to require, however using a broker if you are self employed can be extremely helpful because they will have access to an even more diverse range of lenders.

This diverse panel will include lenders that can only be accessed through a broker and this could mean you will get a much better rate as well as most likely being able to access a specialist lender depending on your circumstances (such as poor credit).

Can We Help?

If you are self-employed, purchasing a property and have any questions, then we will be more than happy to help where we can.

We specialise in mortgages for those who are self-employed, so do reach out to us on 01322 553282 or contact us online.