Firstly if you have set up your own business or are self employed congratulations on going out on your own successfully! When it comes to mortgages however this might not be as celebrated, but here at Firstxtra we’re to help you navigate the world of mortgages and lending to find the best mortgage deal for you. 

Let’s face the facts, most mortgage lenders do not consider the “full picture” of the business. They look at the stats, the money income and dispenables, how long you have been trading etc. The mortgage approval system is designed to assure the banks and lenders that you will be able to pay it back. So, naturally, when you are freelance, self employed or working as a Limited Company these things may not be so clean cut. A FirstXtra mortgage advisor can navigate these common problems to find lenders willing to accept applicants who run a limited company.
Over the years we’ve worked with many self employed people and safely secured the best mortgage for them at the time. So we’re well aware of the many issues that may occur during the process. For instance if you work for a Limited Company some Directors may choose to keep the profit within the business. You may have been trading for less than 3 years as a self employed person, which limits your paper trail and yearly income to access. We have had clients who have an inconsistent turnover for averaging, and even Limited Companies which have family members employed for tax management. We’ve seen it all. 

Getting a mortgage when you are self-employed is completely doable, with the right advice.

Whilst it is definitely not the easy path, here at Firstxtra we’re with you every step of the way. We’re a small family run team, so if you still have questions on the mortgage process or just need some financial advice, we highly recommend speaking with a Firstxtra mortgage advisor today. Before your chat, Here are our top tips for you to get prepared for applying for your mortgage when you are self-employed. 

  • Work on improving your credit score as this shows your bank that you are reliable with money. 
  • Aim to pay off any large debts, such as loans or credit card balances, before you apply for your mortgage. Again, this may sound obvious but the less debt you’re in, the more likely your application is to succeed.
  • Get the biggest deposit possible. This will help as lenders will see you as less risky if you have this in place. However, we can still get you a mortgage with a smaller deposit there will just be more hoops to jump through 
  • Make sure all your accounts are up to date and that you have all your latest Tax documentation. All lenders will need this to prove your income
  • Aim to cut back on unnecessary expenses in the run up to your mortgage application. The bank will take expenses into account when working out how much you can afford to borrow. So fewer will make you a better candidate in the lender’s eyes.
  • Collate as much positive information on your financial history as possible, the more we have to review, the stronger your application could be.

Most importantly come and speak to one of our friendly adviser team well before you are thinking about taking out a mortgage as we can guide you and make sure that you are in the best position possible to apply for a new mortgage

Please contact us here for more information, or call us today to begin your mortgage application process. 

The information contained within was correct at the time of publication but is subject to change.

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