Introduction to our self-employed mortgage guide

Self-employed mortgages aren’t as difficult as they may seem as long as you have the correct documents (accounts, tax calculations, tax year overview, self-assessments), you will also need a healthy deposit and a good credit file as well as credit history, the lender will request more documents as they will need to see proof of income and evidence that your business is well established and successful enough to provide you with a suitable income.

We have a wide range of knowledge when it comes to self-employed mortgages in Liverpool with research conducted regularly to keep us up to date on the different lending criteria with specialist lenders and mainstream lenders, we also do a full mortgage market review, so that we are one step ahead when requesting documents to support your application, as self-employed mortgage requirements do differ slightly from applicants who are employed.

What will the mortgage lenders ask for?

The lender will assess four main factors when reviewing your documents, you will need to provide evidence of:

1. Bank statements
2. Expenses and costs involved in the day-to-day running of your business, your latest and previous years' certified accounts (Limited companies), SA302's and tax year overviews (sole traders).
3. The salary amount that you’re earning to see if you have a reliable income (net profit, dividend payments or other self-employed income you may receive). Some lenders may be able to consider using your retained profits if the limited company business is well established.

We have worked with many self-employed mortgage applicants over the years, that have been successful, these are applicants that come from all different types of industries, and there are options for everyone when it comes to applying for a mortgage if you meet the criteria with the lenders.

How long does my business need to be trading for?

You will need to be trading for at least 1 year to have access to some lenders, for more lenders to be available to you then 2 years trading evidence is always advised. This looks better in the eyes of the lender, the longer you have been trading the better your options will be.

Can I get a mortgage as a self-employed worker?

Once we have found the most suitable mortgage deal for you, we can start to look at a mortgage application that’s suitable for your circumstances. We have access to the whole of the market when it comes to mortgage providers which means we can find a deal that best suits you with suitable interest rates, this is one of the many perks of using a mortgage adviser in Liverpool, we have access to every mortgage provider’s lending criteria which means our specialist broker advice is accurate and honest.

If you are a self-employed mortgage applicant, most lenders will still allow you to apply for a mortgage with them as long as you can provide documented evidence of your earnings and the success of your business financially. Self-employed people think they aren't able to get a mortgage but it is possible even if you are looking to do a joint mortgage. If you speak to a mortgage advisor getting a mortgage can be made simple as they will advise and help throughout the process.

As a self-employed person whether you are a sole trader or own a registered limited company your chances of being accepted are still as likely as employed applicants, the repayments on your mortgage will still be generated the same also. Self-employed workers have the same mortgage chances as other applicants. As lenders calculate this using the same process.

How does my credit affect if I can get a mortgage?

Having a good credit score is a good thing but it is the credit profile that we and mortgage lenders will concentrate on when assessing your financial situation. Everyone's personal circumstances are different and we will help and advise you with what the best thing for you to do is if your credit rating isn't the best.

As with every mortgage, if your credit profile is poor then fewer lenders will be available to you which also means that you will pay higher mortgage rates/monthly payments. If you improve your credit then you will have access to more mortgage deals and your monthly repayments will be more desirable.

Our knowledge on self-employed applicants

At LTC Mortgages, our mortgage brokers specialise in most types of mortgages and understand the common issues self-employed people face when looking to purchase or remortgage a property, therefore we are well-equipped with the skills and knowledge needed to provide you with the best mortgage advice.

We always strive to find our self-employed clients the best mortgage deals with the best lenders in the UK, contact us for self-employment mortgage advice today.

We are available 5 days a week and offer free initial consultations so get in touch now and we can help advise you on self-employed mortgages in Liverpool! We look forward to hearing from you!