The world of being self employed is always changing and so is the lending criteria of mortgage lenders.
If you’re self-employed or a sole trader and looking to get a mortgage, in theory you will have access to the same range of mortgages as everybody else. However, in order to qualify for a mortgage you’ll need to pass the lender’s affordability checks, which can be more difficult when you’re self employed because you’ll need to provide more evidence of your income.
This normally means supplying last two years worth of accounts, or the lender will use your most recent profit figure if it’s lower to assess your affordability. For sole traders, you’ll be asked for Self Assessment Tax Calculation (SA302) forms, as well as a tax year overview and your latest three months’ business and personal bank statements. While the latest two years accounts is required for the majority of lenders, we do have lenders who will look to lend with just one year’s account in certain circumstances.
Obtaining a mortgage if you are self employed can be more difficult but it is far from impossible, it is important you look for professional advice to find the best options for your circumstances.
