Take the straightforward route to a self-employed home mortgage
Getting a mortgage when self-employed can be tricky. Your finances aren’t as simple as an employee. You might not have a regular income. Plus, you’re busy running your business. At The Mortgage Geezer we get it. We get that you need specialist help, and we’re here to provide it.
Together with my team, I do the hard work for you, working with self-employed mortgage lenders to bring you the best mortgage deals out there. Forget about spending hours checking and double-checking paperwork, filling in forms, and chasing the lenders. When you choose The Mortgage Geezer as your self-employed mortgage broker, you get back that precious time.
Whether you’re a sole trader, a freelancer or a contractor, The Mortgage Geezer helps more people answer “Yes” to the question “Can the self-employed get a mortgage”. If you’ve decided it’s time to apply for a mortgage, but are concerned about your employment status, improve your chances of getting access to some of the best mortgages for the self-employed and contact The Mortgage Geezer.
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Why Choose The Mortgage Geezer?
What’s complicated about mortgage loans for the self-employed?
When you look for a mortgage, lenders want to know that you will be able to repay the money you borrow. For employed applicants, with a steady income, it is relatively simple to demonstrate that their income, minus any outgoings, will be enough to meet their monthly repayments. For self-employed mortgage applicants however, the picture can be less clear.
Income is sometimes irregular, particularly for freelancers, and even if you own a limited company, the company accounts may not give a full picture of whether you will be able to afford your mortgage. That’s why it’s important to talk to a broker who understands self-employed mortgage criteria, and how to meet them. It’s also useful to work with a broker that has relationships with different lenders, from high street lenders to specialist lenders. That’s because self-employed mortgage lending criteria differ between lenders. In addition, self-employed lending requirements can change over time, which is why talking to a specialist like The Mortgage Geezer ensures you’re always getting the most up-to-date mortgage advice available.
The challenges getting mortgages for the self-employed in the UK
The Mortgage Geezer likes to keep things simple, so here’s a quick no-jargon look at some of the barriers facing self-employed mortgage applicants.
Changes in profits – We’re sure you’d agree that it would be great if you or your company’s profits steadily rose from year to year. But life isn’t like that. Loads of factors can impact how much money you and your business make, and so profits tend to vary over time. Sometimes higher, sometimes lower. This can make it difficult for even the best mortgage providers for the self-employed to calculate whether you can afford a mortgage.
Complex income – Most employees have a pretty straightforward income, their salary. If you’re self-employed, how your income is made up may be more complicated. You may simply take money from your business bank account, and file annual personal accounts. If you work via a limited company, pay yourself a salary and dividends. You could have retained profits, which some lenders will bear in mind when considering income and their self-employed mortgage requirements. The Mortgage Geezer understands which lenders are the most appropriate for different types of income.
Start-ups and new businesses – If you haven’t been trading for long it can be hard to show how you’re doing. While most lenders will want to see 3 years’ worth of accounts, it may still be possible to find mortgages for the self-employed with just 1 years accounts.
Your accounts – Every self-employed person knows the importance of keeping their accounts up-to-date and lenders agree. Lenders prefer it if your accounts have been prepared by a chartered accountant, so if you haven’t done this in the past it may be worth considering for the future. You should also be aware that while it is perfectly legal to minimise your tax liability, doing so can sometimes make your income seem lower than it may be in reality. So bear that in mind.
Am I even self-employed? – Good question. As far as lenders are concerned you’ll generally be considered self-employed if you are responsible for the success of a business, or own more than a certain percentage of it. So you might be a sole trader, a company director of a limited company, or a contractor. Freelancers will also be treated as self-employed.
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How can I improve my chances of accessing the best mortgage loans for self-employed people?
As well as having your accounts professionally prepared, you can take some steps to improve your mortgage chances.
It’s helpful to have all documentation you need ready when you make your application, including SA302 forms, which summarise your income over a tax year, evidence of future work, and bank statements. You should also avoid changing your business too much in the run up to an application. Stability is key. By all means keep trying to grow your business, but don’t completely alter your business model.
You should also follow the advice we give to all mortgage applicants. Avoid getting into debt, particularly through short-term payday loans, get a decent deposit together, and make sure you’re on the electoral register.
Of course the number one thing you should do is contact The Mortgage Geezer.
Why use The Mortgage Geezer?
As you can see there are quite a lot of considerations when it comes to finding a mortgage when you’re self employed. We understand what needs doing and get on with doing it. We’ll make sure you’ve got all the documentation you need for the best chance of success. We’ll put your application in front of the best mortgage lenders for self employed people. We’ll keep you in the loop at all times. And we won’t confuse you with jargon.
When you work for yourself, time is money. Save both by finding a self-employed mortgage loan with the no-nonsense Mortgage Geezer.
THINK CAREFULLY ABOUT SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS