There are actually quite a number of myths out there in the mortgage world, and especially with self-employed borrowers. Plenty of people think they’re at a disadvantage when applying for a mortgage just because they don’t have a standard 9-to-5 income. Today, we’re blasting that myth wide open with a true client story.
The Myth: “You Can’t Get a Mortgage If You’re Self-Employed”
Our customer, Ed, who is a freelance graphic designer in South West London, had always wanted to be a homeowner. But having worked for himself for years, he’d managed to persuade himself that lenders would never take his income seriously. He’d heard stories from friends and read on the internet that self-employed people had to jump through hoops aplenty, or were outright refused mortgages.
Because of this myth, Ed did not even try to get onto the property ladder for a couple of years.
The Reality: Tailored Mortgage Advice Made All the Difference
When Ed approached Oportfolio Mortgages, he was still sceptical. But we quickly proved to him that being self-employed was not a reason why homeownership had to wait.
Here’s how we helped him do it:
- We checked two full years of his self-employment earnings with tax calculations (SA302s) and accounts.
- We utilized lenders that work with self-employed clients and understand the details of freelancing earnings.
- We helped him submit a strong application, demonstrating how his earnings were consistent and increasing over time.
- In the course of a matter of weeks, Ed wasn’t just accepted for a mortgage, he’d had an offer accepted on a flat in Putney which he loved.
The Outcome
Ed was able to move into his new home and finalize his purchase within two months of our first discussion. The myth he’d believed had almost prevented him from even trying it, but the reality was very far otherwise.
Now he’s proof positive that self-employed homebuyers can definitely get mortgages, with the right help and approach.
What You Need to Know
If you’re self-employed and planning to buy, here are a few things that can work in your favour:
- Keep your books and tax returns up to date
- Speak to a mortgage adviser who is experienced in self-employed income
- Don’t assume you’ll be rejected. Many lenders are willing to lend to self-employed borrowers
- A minimum of one year (preferably two) of trading history
Final Thoughts
Don’t let outdated misconceptions hold you back from reaching your property goals. Whether you’re a sole trader, starting a business or working on a non-standard basis, there are greater options to be available than you might first think.
Need Advice? Let’s Talk.
If you’re self-employed and unsure about your mortgage prospects, get in contact with the Oportfolio Mortgages team. Our team of knowledgeable and switched on advisors are here to help you!
