How to get a mortgage if you’re self-employed

Applying for any type of mortgage can be stressful, but for someone that’s self employed, applying for a mortgage can be frustrating, stressful and often requires a lot of additional work and research compared to other salaried employed individuals.

There are a number of different companies still offering self-employed mortgages and while many lenders limit the amount they lend, it is important to remember that they are still available and following a few simple guidelines will help to ensure that you have the opportunity to obtain a mortgage.

Details of your earnings

The criteria for a self-employed mortgage varies depending on the lender, however, while the criteria does vary there are a number of ways you can improve your application. One of the best and first ways of improving your application is by providing a lender with clear and correct financial figures. Some lenders, but not all, expect you provide three years of business accounts to illustrate your earnings. If you aren’t able to provide three full years of accounting offer a letter from your accountant or as much information as you can.

Use a broker

Another point that could help to achieve a self-employed mortgage is by using a broker. Specialist, independent brokers often possess the knowledge and experience to evaluate your current circumstances and full earnings, as well as provide you will helpful advice. Brokers can also try and obtain you a better priced mortgage. In reality many brokers have the necessary contacts in the industry and are able to access special mortgage deals to ensure you a lower interest rate. And while many independent brokers do charge a considerable fee for their work, the end result is that they will be able to obtain a mortgage for you.

The process of obtaining a mortgage when you are a contractor is considerably harder, however, it is possible. By following these two simple points of providing the lender with accurate financial records and using a reliable, independent mortgage broker, this will help you to obtain a low interest contractor mortgage that you may have been previously rejected for in the past.

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