You might believe that getting a mortgage is harder if you are self-employed than if a company employs you. Don’t worry. Being self-employed does not mean that you cannot buy your dream house. For a Mortgage advisor Gloucester, go to www.geniusma.com/
What is a mortgage for self-employed people?
Self-employed mortgages do not exist. You’ll be applying for the exact same mortgage products that homebuyers employed by companies do.
Lenders will evaluate your income differently depending on the way you operate your business and for how long you’ve been self-employed.
How does a lender assess your income level?
Lenders will want to know that you can pay your mortgage with a stable and reliable income. Your accounts, tax return, bank statements, and business projections will be examined to determine your financial status.
How lenders calculate your income depends on the way you work as a self-employed person:
You are a sole-trader
Form SA100 shows the income you have earned from self-assessment.
Some lenders may only look at the most recent year.
You are a business partner
Your SA302 and the Partnership Agreement, showing your share of profits will be required.
Most lenders will take into account the last two to three years’ income. However, some only look at the most recent year.
You are a director in a limited company
Your company’s accounts, your tax returns, and your payslips (which show your salary, dividends and other income) will be required.
Some lenders may only look at the most recent year.