Mortgages for self-employed people
When it comes to getting a mortgage, you are classed as self-employed if you are registered as self-employed, i.e. you are paying your own tax and national insurance, or if you are a partner in a business.
This also includes a Limited Liability Partnership or if you are a director of a limited company, provided you have more than 20% shareholding in the company.
Being your own boss gives you lots of freedom, of course, but when it comes to obtaining a mortgage, things are slightly more complicated for the self-employed. Lenders will always want to see proof of income but they sometimes find it difficult to assess their risks with people who are self-employed and who often have fluctuating income levels. Typically, lenders may ask to see two or three sets of accounts and they may be particularly cautious if you have not been in business for very long.
We understand that your income can go up and down and we understand that sometimes it makes sense to minimise the amount you earn so that you are working tax efficient. This can pose problems when it comes to arranging a mortgage.
So, if you are thinking about buying a property and need a mortgage or any form of finance, speak to us as soon as possible so that we can give you some advice on how to prepare for your mortgage application so that, when you are ready to apply, you will be prepared with the necessary evidence for your mortgage lender.