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There’s no difference between mortgage products for the self-employed & the employed.
The good news is that the majority of banks & building societies will lend to self-employed individuals.
The not so good news is that it can be much more difficult to fit lender criteria for these mortgage products when self-employed.
Establishing income & affordability can be one of the main challenges that self-employed first time buyers face.
When employed this may be as simple as the latest few payslips & P60 to evidence a steady income.
However, when self-employed, many lenders will want to assess your reported earnings over the last 2-3 years (potentially more!).
Some may even request projections for future earnings from your accountant.
Depending on the type of self-employment, different lenders will use different figures when calculating affordability, adding to the confusion.
The good news is that we work with lenders suit self-employed applicants, such as using first year accounts, company net profits, daily rate and so on.
There’s no ‘one size fits all’ answer here.
It’s not just about securing the best interest rates available.
There’s so many options available, including fixed rate mortgages with no early repayment charges & offset mortgages to name a couple, which may suit you best.
Although you need to fit criteria with lenders, we want to find you a lender that fits your criteria!
Working out how much you can borrow isn’t the easiest task, particularly if you’re self-employed.
Lenders will assess your affordability when deciding how much they’ll lend, taking into account your income & expenditure.
There are many other factors that’ll be taken into account, such as your credit score, although a general rule of thumb is to multiply your earnings by 4.5 to get a good indication.
For joint applications, you can use your combined income.
You can absolutely buy a new build property as a first time buyer, however the mortgage criteria may be different to a standard purchase.
Some lenders may require a bigger deposit (15% or more with certain lenders), although there are some lenders that are happy to consider as low as 5%.
You’ll also want to do your due diligence on the developers & ensure that there is an NHBC (or equivalent) certificate in place.
At Rosehill, we take pride in building long-term relationships with our clients. We don’t see ourselves as just a mortgage broker, but rather a trusted partner who will be with you every step of the way.
At Rosehill, we take pride in building long-term relationships with our clients. We don’t see ourselves as just a mortgage broker, but rather a trusted partner who will be with you every step of the way.
There’ll be some standard documents that you’ll want to gather, such as a proof of ID, proof of address, proof of income, proof of deposit and a credit report.
The main differences here will generally relate to proof of income.
If you’re employed, this may be as simple as 3 months’ payslips and a P60.
If you’re self-employed, check out our guide on what documents you should gather.
If you can’t quite afford to buy a home just yet, shared ownership may be a good option for you.
This allows you to purchase a ‘share’ of a property – between 25% to 75% of the property value – while you pay rent on the remaining share to the housing association.
This isn’t a mortgage option that is offered by all lenders, and it can be tricky to work out your borrowing power with the housing association rental payments, so be sure to speak with a great broker (hopefully with Rosehill!).
There’s also other ways of getting onto the property ladder, such as using the Government’s Help to Buy Equity Loan.
This will depend on a few factors, such as the type of bad credit, when this was registered and whether/when this was satisfied.
If it’s a case of a missed payment lenders may overlook this, but for heavier adverse credit you may not fit criteria with some lenders.
Even if you’ve been rejected by one lender, this doesn’t mean that you won’t be able to get a mortgage.
There’s lots of lenders out there & it may just be a case of needing a higher deposit (e.g. 15%) & potentially having a higher interest rate.
Self-employed mortgages is what we do. Getting you moved in to your first home in the most stress free way possible is our aim.
We advise on & arrange the most suitable mortgage, protection & general insurance products for you. We’re here to help from start to finish, both now and in the future.
Absolutely!
It’s very common for our self-employed clients to have employed partners, from permanent contracts to zero hours contracts.
That being said, we still need to know employed criteria inside out.
We focus on building long-lasting relationships with clients.
We therefore charge a reduced fee for our existing client remortgages.
Click here for more detail.
Access your credit report
As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments. Think carefully before securing any other debts against your home or property. The Financial Conduct Authority does not regulate commercial buy to lets and some forms of commercial mortgages. You may have to pay an early repayment charge to your existing lender if you re-mortgage
We typically charge a fee for our services, which is dependent on the amount of administration required. Please refer to our terms of business for further information.
The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. The purpose of any content on this site is to provide technical and generic information and should not be interpreted as a personal recommendation or advice.
We aim to provide the best possible service to our clients. However, if you have a complaint that we’re unable to resolve, please see our complaints policy.
Rose Hill Financial Services Ltd is authorised and regulated by the Financial Conduct Authority. You can find us on the Financial Services Register https://register.fca.org.uk/ under reference 912303. Registered office address: 1 Bell Street, 2nd Floor, London, England, NW1 5BY. Registered in England and Wales. Company registration no: 11997519.
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