It’s surprising how often we speak with self-employed people who think that owning a business or working for themselves means they are unable or unlikely to obtain a mortgage. The truth is that lenders are all too aware of the particular situation for self-employed people and have a pretty straightforward process in place to work out how much you can borrow. Lenders will vary in the amount of time it is expected an applicant to provide evidence of income. Most will look at the income received over the last two or three tax years and either average it out or take the most recent year as a basis for calculation. However, if you have a good profile, some lenders will make it possible to get a loan with just one year’s set of accounts.
Many self-employed people who work on a freelance basis often have income from various different sources. musicians for example will be paid on a self-employed basis for much of their work but some of their teaching work will be on a PAYE basis with their income being taxed at source. This latter income will show differently and should still contribute to your income for the year.
Our advisors will be able to help you get everything in order and will give you valuable advice that will help you obtain a mortgage.
We also have a few other things we can give you tips for, like remortgaging, buy to let mortgages and buying a home for the first time. If you are interested in any of our services please get in contact with us and our advisors will be able to help you with their expertise.
