MORTGAGE BROKER IN KENT, LONDON & SOUTH EAST
SELF-EMPLOYED MORTGAGES
A self-employed mortgage is designed to look at an individual that work for themself and is designed to consider unique income structures, especially those that vary from an employee.
What Is A Self-Employed Mortgage?
A Self-Employed Mortgage is a home loan specifically designed for individuals who work for themselves rather than an employer. These mortgages take into account the unique income patterns and financial situations of self-employed individuals, who may not have the same consistent income streams as traditional employees.
Who Is A Self-Employed Mortgage For?
Self-Employed Mortgages are suitable for:
Sole traders, freelancers and contractors
Partners in a business
Company directors with a significant shareholding
Anyone who earns the majority of their income through self-employment
What Are The Advantages Of Self-Employed Mortgages?
Tailored to the specific needs of self-employed individuals
May consider a wider range of income sources than traditional mortgages, some lenders may offer more flexible criteria for self-employed applicants
an potentially secure a mortgage with as little as one year of accounts (though two or more years are typically preferred), access to the same range of mortgage products as employed individuals
What Are The Disadvantages Of Self-Employed Mortgages?
May require more extensive documentation than standard mortgages
Potentially stricter lending criteria
May need a larger deposit
Income fluctuations can make it harder to prove affordability
Examples Of Where Self-Employed Mortgages Can Be Used:
Purchasing a residential property, remortgaging an existing property, buy-to-let investments
Commercial property purchases
Home improvements or extensions
Debt consolidation (though this should be carefully considered)
It's important to note that while self-employed individuals may face some additional hurdles in securing a mortgage, many lenders are increasingly recognising the value of self-employed borrowers. Working with a mortgage broker experienced in self-employed mortgages can often help navigate the process more smoothly and potentially access a wider range of mortgage products. As with any mortgage, it's crucial to carefully consider affordability and future income prospects before committing to a mortgage.
Process and Documentation Required for Self-Employed Mortgages
Proof of income: typically, 2-3 years of accounts or tax calculations or computations (SA302 forms)
Business bank statements
Proof of upcoming contracts or work (for contractors)
Personal bank statements
Proof of deposit
Identification and address verification
Details of any existing debts or financial commitments
For limited company directors: company accounts and details of salary and dividends
