Insights

Self-employed? Here's 6 top tips to help you get a mortgage

Mortgages 2 min read 22/09/2021

We’ve put together six top tips if you’re self employed and looking to get a mortgage.

The financial impact of the Covid-19 pandemic has been blunt and potentially long lasting for the self employed, and many are still struggling to rebuild back their business to where it was pre-pandemic.

Those who are self employed may be feeling pessimistic about their future home buying prospects after this difficult period, but fortunately there are options available to help. It’s important to seek advice from a broker who can provide whole of market experience and explore specialist lenders options. These lenders can dig into the detail of an applicant who may have complicated income streams and lift those traditional barriers to getting a mortgage.

Our top tips:

  1. Consider using a broker: The home buying journey can be a complicated journey so having an experienced guide throughout can make all the difference. Brokers have whole of market experience so can outline all the options available to fit your individual circumstances. 
  1. Evidence two to three years of accounts: Lenders will typically ask to look at two to three years’ worth of accounts, as proof you have a good level of income. Since Covid-19, it is also important to show your business has recovered to pre-pandemic levels to instil confidence in the lender you can meet mortgage repayments.
  1. Get your accounts in order: You will need to provide documentation to prove your income, which will vary depending on the lender. Making sure you know which documents lenders will ask of you and having this to hand will save time and help speed up the process.
  1. Evidence a steady stream of work: To prove that you’re a reliable borrower, it’s important to demonstrate a steady stream of work that has been maintained over time. It is equally important to show a strong pipeline of upcoming work to reassure lenders.
  2. Improve your credit profile: There are many ways to boost your credit profile. Simple steps such as registering on the electoral roll, paying off debts and meeting regular payments will over time make a difference. 
  3. Save a bigger deposit: Having a bigger deposit will better your chances of securing a mortgage and demonstrate you aren’t a risk to lend to. Review your monthly expenditure to see where you can afford to cut back and put towards saving for a deposit and utilise fixed term savings accounts to benefit from a more favourable interest rate.

 

Want to find out more about what a broker does and how they can help you? Read our 10 reasons to use a broker article.

 

Subject to status. Your mortgage is secured on your property.  Your property may be repossessed if you do not keep up repayments.