Sometimes things may look difficult but as soon as we get familiar with their insights, we come to know that they are not as tricky as we thought. Mortgages for self employed remind us the same thing. It has been a hard desire to fulfil especially when you are working yourself and seeking to buy a new home or looking for remortgages option. With no stable income, lenders may reluctant to offer mortgage to you, but it is not the end.

There is no doubt that one section is indeed struggling a lot in getting mortgage, apart from first time buyers and existing homeowners, and it is SELF EMPLOYED. Few years back, they could apply for mortgage just by showing that they were earning but nowadays, lenders or the traditional lenders have become more specific in providing the mortgage to the self-employed people.

Shine Mortgages believes in modern trends and always look forward to accept the mortgage applications of these individuals. In fact, we have prepared personalised offers for their better chances.

  • Who Are Accepted As Self Employed?
    In most of the times, the lenders consider those individuals as the self employed, who are possessing around 25% of a business or that figure may go above. They do not mind those people working in partnerships because lenders also consider them just as they consider the sole traders.

  • Is It Tough to Get A Mortgage While Self Employed?
    Well, the past trends reveal that getting a mortgage while living on self employment may be tough, but not at Shine Mortgages. It is difficult because the borrowers have to show the proof of their earning to convince the lender about the proper monthly payments. Bringing that proof usually becomes tough for them because they are working themselves.

  • Who Is Eligible To Get A Self Employed Mortgage?
    There are certain criteria on which we accept the self employed mortgage application. We expect that our clients should apply for the mortgage only if they have passed these qualifications:
    • People should be doing business for at least 3 years
    • They should have proof of two years on the tax returns both in context of accounts or self-assessment.

    As far as deposit is concerned, it depends upon your requirement of money and on your credit score. However, we do not follow a biased approach rather we have specialised mortgage for bad credit people too.

  • How To Improve Your Chances Of Mortgage Approval
    • Analyse your requirement and research accordingly through the online platform.
    • You should be active enough to keep all paperwork ready especially related to your business, accounts and other necessary records.
    • It would be better to seek assistance of the accountant to manage all papers on accounts and taxes
    • Fulfil every authoritative formality in order to prove your income.
    • You must be running your business for some years or at least for the last couple of years.

How to apply

Applying for the self employed mortgage is not difficult at all, if you are giving us the chance to serve your purposes. You can do this by filling an online application form and with quick revert, we help you at the earliest.

If we talk about an overall scenario, the biggest change that has occurred in the recent times is the lender’s requirement of proving the income, which becomes mandatory for the borrower.

  • Factors That We Consider To Allow a Mortgage
    In order to APPLY FOR LOAN, you need to have:
    • Accounts record of last two years
    • An Account Professional (Optional)
    • Proof of regular work from past years
    • Your deposit record
    • A perfect credit score
  • What Documents Are Required?
    While applying for self employed mortgage, you need to have these documents:
    • Identity Proof
    • Residence Proof
    • Income Proof
    • Bank Accounts Details
    • Personal Tax Returns
    • Deposit Details
    • Insurance (if any)
  • How To Prove Your Income
    • It would be better to wait for mortgage until your business is settled down for at least two to three years.
    • We always prefer that your accounts should be prepared through a certified accountant, although it is not mandatory.
    • Borrowers should display income status that they have reported to HMRC (via SA302 forms) and the tax that they have paid.

How You Can Calculate a Self Employed Mortgage?

Shine Mortgages always suggests its clients to do a proper research to find out the best mortgage deal while being self employed. We are already providing personalised deals where the rates are calculated on different aspects.

Here are our basic criteria to calculate the self employed mortgage:

  • The amount may depend upon your previous years' income earned or trading of previous year.
  • In some cases, we also calculate the mortgage deal based upon your business's legal status.
  • Net profits can be accepted as income particularly for sole traders and partnerships.
  • For limited companies, we may prefer salary and net profit of the company.

Self Employed Mortgage For First Time Buyers

Difficulty level can be high for the self employed persons to apply for a mortgage, but it may go higher especially for those, who are the first time buyers. Shine Mortgages allows them to fulfil their desires and make a solid start to their finances. Here are two important suggestions for you:

  • Make a nice start by organising your finances and start focusing on the deposits. We may ask for at least 5% deposit of the entire home amount.
  • First time buyers especially the sole traders, limited company contractors and freelancers should have all the information to prove their income.

Dos And Don'ts Of Mortgages For Self Employed

We not only see you as our potential borrowers, but also as our financial mate. This is why we suggest you regarding what to do or not while applying for the self employed mortgage.

Always organise your latest records and accounts. Creating mess with them is only your loss. Do not intentionally reduce your income just for the purpose of minimising the tax returns. It will put negative impact on your financial profile.
To submit a strong mortgage application, it would be better for you to hire a certified accountant, who can systematise nicely your accounts and tax return. Do not think that you cannot apply for the mortgage if you are self employed.
Communicate with us on regular basis and make familiar us with any sort of compulsion that you are facing during the mortgage period. Do not try to apply for mortgage at different lending places because that may hamper your credit score more.

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