Are you self-employed and looking to get yourself on the property ladder? It may seem daunting, as it’s true that there are a few more obstacles in your path than for those working as employees in full-time jobs.
But fear not: it is very much achievable. At Derngate Wealth Management, we know this to be the case as we have helped numerous self-employed individuals secure mortgages for their dream homes. As a specialist self-employed mortgage broker, we know what’s needed to meet the criteria lenders are looking for.
First of all, are you classed as self-employed? If you work as a freelancer, contractor or operate as a sole trader then, typically, the answer is yes. As we’ll outline though, this doesn’t mean a mortgage is out of your reach.
Yes, it’s the case that securing a mortgage will be a little tougher for you. But the key is to understand which criteria lenders are expecting you to meet in order to accept your application – and how to meet them.
If you’re self-employed and living in Loughborough, you’ve come to the right place. At Derngate Wealth Management, our team is here to help you make your dreams a reality; we can go through each of the requirements set out by lenders step-by-step, help you make any changes you need to make to meet them, and even assist you in preparing your paperwork to submit your application.
Mortgage lenders have to put in place strict guidelines to identify who is likely to be able to keep up their monthly payments and who isn’t.
Most lenders expect to see at least two years of certified accounts, but there are companies out there that will accept one year.
Typically, mortgage providers will calculate your average income based on previous years’ accounts, so the more evidence you have of your income, the more likely you are to be accepted. The average income determined by the lender will also determine how much you can borrow.
If you’re employed as a contractor, it’s worth preparing evidence of any upcoming contracts – some lenders will ask for this.
Besides providing strong annual accounts, there are a few other things you can do to increase the likelihood of securing a mortgage. While you have the same access to mortgages legally as anyone on a permanent, full-time contract, lenders will see you as more of a risk. With that in mind, anything you can do to demonstrate you’re low-risk will improve your odds.
Steps you can take include the following:
Gary Fowkes comes with over 12 years of mortgage advice and protection experience, meaning you will be in good hands throughout the entire process and get the tailored advice you need, when you need it, from an expert.
Looking for a specialist self-employed mortgage broker in Loughborough?
You’ve found it! Get in touch with one of our advisors today to receive a free initial consultation.