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 focus on net profit, and some may also 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 appears stable enough for the lender
• How your wider affordability looks once your commitments are taken into account
Many self employed applicants assume they will struggle because they do not have a standard salary, but that is not always the case. 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 a 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 Wilton for different types of applicants
We help a wide range of self employed applicants in Wilton, 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 are paid through salary and dividends, or leave profit in 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, gone down or become more consistent recently, it helps to get advice before making assumptions about what may be possible.
Self employed first time buyers, movers and remortgage clients
We can help self employed clients at different stages, whether you are buying your first home, moving house or reviewing your current deal.
Self employed mortgage advice in Wilton and the surrounding area
For many people, it helps to know they can speak to someone who understands the local area as well as the mortgage side of the process.
We help self employed clients in Wilton and the surrounding area who want clear mortgage advice without feeling they have to navigate lender criteria on their own. Some people prefer a local conversation and others prefer to deal with everything by phone or video call. We can work in the way that suits you best.
If you are based in Wilton or nearby and want practical guidance on your mortgage options, we can help you understand what may be possible and what your next steps may be.
Local mortgage advice for Wilton business owners and self employed applicants
If you run your own business, mortgage advice can feel much more useful when it is tailored to the way you are actually paid rather than based on a standard employed income model.
We understand that self employed applicants often want help with practical questions such as how many years of accounts may be needed, whether one year may be enough, how salary and dividends may be treated and what paperwork lenders may want to see.
We can talk these points through clearly and help you understand what may be realistic before you make an application.
Need self employed mortgage advice in Wilton?
If you are self employed and want clear, friendly mortgage advice in Wilton, 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.
Why use Your Mortgage Expert for self employed mortgage advice in Wilton?
Getting a mortgage when you are self employed often comes down to more than just your latest income figure. Lenders can assess salary, dividends, net profit and retained profits in very different ways, and the right lender choice can make a real difference.
That is where expert mortgage advice can help. We work with self employed applicants in Wilton and help sole traders, company directors and business owners understand which lenders may suit their circumstances, what documents may be needed and how to present the application clearly.
We help by:
• Explaining how different lenders may assess self employed income
• Helping you understand what documents are likely to be needed
• Identifying lenders that may be more suitable for your circumstances
• Helping with cases involving one year of accounts, changing income or limited company structures
• Guiding you through the process from first enquiry to completion
Our aim is to make the process clearer, less stressful and better informed from the outset.
Frequently Asked Questions
Can I get a mortgage if I am self employed?
Can I get a mortgage with one year of accounts?
Do lenders use salary and dividends?
Can I speak to someone locally if I live in Wilton?
Can you help self employed first time buyers in Wilton?
Do you work with local Wilton property partners?
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.