We are often speaking to people that are self-employed and they don’t think they can get a decent mortgage. The thing is that lenders know about the situation that self-employed people are in and so they have a straight-forward process to work out how much they would be prepared to lend you. You could be a sole trader, a partner or a company director, there is a process in which you can obtain a mortgage. The main criteria are the individual’s net profits, but can also be the salary and paid dividends that are looked at. Lenders will also vary the amount of time that is expected an applicant to provide evidence of income for most will look at the income received over the last two or three years and some lenders will make it possible to get a loan with just one year’s set of accounts. Many self-employed people who work freelance often have income from various different sources. For example, musicians will be paid on a self-employment basis for much of their work, some of their work will be on a PAYE basis with their income being taxed at source, this income will show differently and should still contribute to your income for the year.
If you are looking to get a mortgage and want to know more about our services or one of our services please get in contact with us, you can see our first-time buyer page here!