Mortgages for Self Employed Applicants

Obtaining a mortgage if your self-employed can be a very straight forward process if you're well prepared and know exactly what you need prior to an application being submitted.

Self-employed mortgages are no different to standard mortgages and your options shouldn't be limited in anyway so long as you can provide the correct documentation. You'll have access to all the same products, same rates and the size of loan available will be calculated in the same way as a standard mortgage.

So, let's make sure you have all the information you'll need to get you off to the best possible start on your mortgage and property journey.

Prepare your documentation

01

Accounts

To evidence the sustainability and level of your income, a lender will want to see at least two years of accounts, prepared and signed off by a chartered or certified accountant. 

Each lender has their own policy when it comes to self-employed income. Some will average out your last 3 years income, some will accept your latest years income and others will opt for the lowest year to base their calculation on. Your broker will know the most appropriate lenders to approach based on your unique accounts.  

02

SA302 Forms

Lenders will also ask for the corresponding SA302 forms, which show your annual tax calculations.

If you filed your self-assessment tax return online, you'll be able to access and pint the SA302 forms yourself here. Otherwise you’ll need to contact HMRC to request them.

03

ID Documents

As with standard applications, you’ll need to provide some ID. Your lender will ask for photographic ID, such as a passport or driving licence, and proof of address, such as a utility bill. 

04

Bank Statements

Your latest 3 bank statements will be used by the underwriter to assess your affordability. Your statements will illustrate how much you spend each month and how much money you have left over to make mortgage repayments. It's wise to keep this in mind on the lead up to your mortgage application.

05

Credit Report

Your broker will need to see a copy of your credit report to ensure they approach appropriate lenders based on your score. You can access a copy of report here.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Let's chat :)

Ready to chat through your options? We're here to help. We'll cover all the costs of an initial consultation, research, illustration and obtain an Agreement in Principle for you. No obligation to proceed with our recommendations.

info@needfp.co.uk
01843 228800