Can I get a mortgage if I’m Self-Employed?

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.


Approved by The Openwork Partnership on 19/06/2023