How do self employed mortgages work?
If you are self employed, applying for a mortgage can sometimes feel more involved than it does for an employed applicant. That is not because getting a mortgage is impossible. It is usually because lenders need to look more closely at how your income is structured and how sustainable it appears.
Different lenders assess self employed income in different ways. Some may look at salary and dividends, some may look at net profit, and some may take retained profits into account for limited company directors. The way your income is assessed can make a real difference to how much you may be able to borrow.
That is why it helps to speak to a broker who understands how self employed cases are presented and which lenders may be more suitable for your circumstances.
Can self employed people get a mortgage?
Being self employed does not stop you getting a mortgage. The key questions are usually:
- How your income is evidenced
- How long you have been trading
- Whether your income is stable enough for the lender
- How your affordability looks once your wider commitments are taken into account
Some people assume they will struggle because they are self employed, but that is not always the case. Many self employed applicants are accepted every year. The important thing is understanding which lenders may suit your circumstances and how to present the application clearly.
What information will I need to provide for a self employed mortgage?
The exact documents needed vary between lenders, but self employed applicants are often asked for some combination of the following:
- Certified accounts, often covering the last two or three years
- SA302s or a Tax Year Overview from HMRC
- Business bank statements or personal bank statements
- Evidence of salary and dividends if you are a limited company director
- Proof of ID and address
- Details of your regular outgoings and financial commitments
Some lenders may consider applicants with only one year of accounts, while others may want longer trading history. We can help you understand what may be needed before you apply so the process feels more straightforward.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Self employed mortgage advice in Salisbury for different types of applicants
We help a wide range of self employed applicants in Salisbury and the surrounding area, including:
Sole traders
If you are a sole trader, lenders will often look at your net profit and trading history. We can help you understand how that may affect affordability.
Limited company directors
If you pay yourself through salary and dividends, or leave profit within the business, lender criteria can vary quite a lot. We can help you understand which lenders may assess your income more favourably.
Applicants with one year of accounts
Some lenders may consider applicants with only one year of accounts, although the options can be more limited. We can help you understand what may be realistic.
Applicants with changing income
If your profits have gone up or down, or your recent trading looks different from earlier years, it helps to get advice before making assumptions about what is possible.
Self employed remortgage clients
If you are already a homeowner and your current mortgage deal is ending, we can also help self employed applicants review remortgage options.
Why self employed applicants often use a mortgage broker
Many self employed borrowers prefer to use a broker because lender criteria can vary so much from one case to another.
A broker can help you:
- Understand how different lenders may assess your income
- Identify what documents are likely to be needed
- Avoid applying to lenders that may not suit your circumstances
- Explain the process clearly before you commit
- Present your case as strongly as possible
That can be especially helpful if you are short on time, unsure how your income will be treated or worried that your business structure makes things more complicated.
Why choose Your Mortgage Expert for self employed mortgage advice in Salisbury?
We know that self employed applicants often need more than a generic mortgage conversation. They want someone to understand how their income works and explain things clearly without unnecessary jargon.
Clients choose us because we offer:
- Clear, friendly advice
- Support with self employed and more complex income cases
- Flexible appointments by phone, video or in person
- Help understanding documents, affordability and lender criteria
- Local support in Salisbury, with wider help available remotely too
We are based in Salisbury and regularly help local clients who are buying, moving home or remortgaging while self employed.
Self employed mortgage advice in Salisbury for first time buyers, movers and remortgages
We help self employed clients at different stages of the journey.
First time buyers
If you are trying to buy your first home while self employed, we can help you understand what lenders may need and what may be realistic based on your income and deposit.
Home movers
If you are moving home, we can help you understand how your self employed income may affect borrowing for your next property.
Remortgage clients
If your current deal is ending, we can help you review your options and understand what may be available now based on your latest accounts and trading position.
Need self employed mortgage advice in Salisbury?
If you are self employed and want clear, friendly mortgage advice in Salisbury, we would be delighted to help. We can talk through your circumstances, explain your options clearly and help you understand what the next step may be.
Frequently Asked Questions
Can I get a mortgage if I am self employed?
How many years of accounts do I need?
Can I get a mortgage with one year of accounts?
Do lenders look at salary and dividends?
What documents do self employed applicants usually need?
Is it harder to get a mortgage if my income changes each year?
Can you help self employed first time buyers in Salisbury?
Can I speak to someone face to face in Salisbury?
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.