Now we have established that being self-employed doesn’t take you out of the mortgage market; you are probably left wondering which lenders offer self-employed mortgages.
While you may think that the bigger lenders don’t offer mortgages for self employed people, you would, in fact, be wrong. When it comes to mainstream lenders, they will have different criteria and requirements from you to qualify for one of their mortgages.
Some lenders out there will require one year of your full accounts so that they can prove your income, other lenders may request up to three years. Lenders will also want to look closely at your profit margins on a year to year basis, as well as other criteria that often comes into account.
This specific detail will vary between lenders and speaking to a mortgage broker with experience will often be the best thing you can do. In this situation, a mortgage broker will already have dealt with many of the lenders and will know their requirements, thus reducing enquiry time for you.
When it comes to preparing for a self-employed mortgage, having an idea of what they will ask for is always helpful.
- Up to 2- 3 year’s worth of account information. However, there are some lenders that will consider applications with just 1 years of trading.
- 3 – 6 months of business bank statements. While some lenders may only ask for three, having six months will always be best practice.
- Three years of SA302 tax forms will also be required.