Can I Get a Mortgage if I’m Self-Employed?
Self-employment can be a great way to make a living, but it can also make it more difficult to get a mortgage. Many lenders are wary of self-employed borrowers due to their fluctuating income and lack of a steady salary. However, it is still possible to get a mortgage if you are self-employed. Here’s what you need to know.
Know Your Credit Score
Before you start the process of applying for a mortgage, it’s important to know your credit score. Your credit score is a number that lenders use to assess your creditworthiness. The higher your score, the more likely you are to be approved for a loan. If your credit score is low, you may need to take steps to improve it before applying for a mortgage.
Gather Your Documentation
When you are self-employed, you will need to provide more documentation to the lender than someone who is employed by a company. This includes two years of tax returns, bank statements, and proof of income. You may also need to provide a profit and loss statement to show your income over the past two years.
Understand Your Options
When you are self-employed, you may not qualify for the same mortgage options as someone who is employed by a company. Some lenders may require a larger down payment or a higher credit score. You may also need to provide additional documentation to prove your income.
Consider a Non-Traditional Lender
If you are having difficulty getting approved for a traditional mortgage, you may want to consider a non high street lender. These lenders may be more likely to work with self-employed borrowers and may have more flexible requirements. However, it’s important to compare rates and fees before applying for any mortgage.
Self-employment can make it more difficult to get a mortgage, but it is still possible. It’s important to know your credit score, gather your documentation, understand your options, and consider a non-traditional lender. With the right preparation, you can get the mortgage you need.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 19/06/2023
