If you’re self-employed or a small business owner and you want to get on the property ladder, finding the right mortgage may prove difficult.
The number of self-employed people in the UK was at its highest level in 40 years in 2014, according to the Office for National Statistics, so demand for self-employed mortgages is likely to be higher than ever.
Before lenders will consider offering you a mortgage, they require proof that a mortgage is affordable – and not just affordable now, but in the future, too. Lenders assess affordability by looking at an applicant’s outgoings and incomings, which they must be able to corroborate.
They therefore need proof of your income and spending, which is where things can get harder for self-employed aspiring homebuyers.
Most lenders will typically ask to see evidence of at least two years of self-employed income but, in some cases, they may ask for three years.
If you have this proof, then you’re likely to have access to a similar selection of mortgages to anyone else in your situation.
However, if you don’t have the necessary evidence, you may find your mortgage options are more limited. Due to the complexities of the documents required for a self-employed mortgage, you may find it helpful to use Simply Mortgage Place who will be able to give you more information on the right mortgage to suit your needs and means.