Mortgage Advice for Self-Employed Professionals in the UK
Self-employed people typically face particular challenges in securing a mortgage. Starting your own business is great, but it will complicate your path to homeownership. At Oportfolio, we often help freelancers, contractors, and entrepreneurs secure reasonably priced mortgage quotations that fit their earning pattern. If you are looking for mortgage advice for self-employed professionals in the UK, then you’re on the right blog.
Mortgage Advice for Self-Employed Professionals in the UK
This is how self-employed professionals need to be informed in order to get mortgage-ready in the UK.
Understand What the Lenders Need
Lenders require regular and consistent income, even if you are self-employed. In most cases, they will request:
- Two or three years’ accounts or SA302s/calculation of tax
- Proof of work regularly or contracts
- Bank statements of regular income
The more stable your income, the better the chance that you will be accepted. If your income is fluctuating, lenders are able to use an average over two or more years.
Work with a Specialist Broker
Various lenders are more self-employed tolerant than others. At Oportfolio, we know which lenders are open to:
- Sole traders with only one year’s accounts
- Company directors who retain profits in the company
- Contractors on day-rate or project payment terms
We pair clients with a suitable lender and put their finances in the best position to guarantee approval.
Organise Your Finances
You require clean up-to-date financial records. Make sure:
- Your accounts are ready and signed off by a qualified accountant
- You pay off any private or company debt
- You don’t have large recent cash withdrawals or abnormal spending
Consider Your Deposit
While 5-10% deposits are on offer, an increased deposit can increase your chances—particularly if your income is non-standard. It can also assist in locking in better interest rates.
Be Ready for Added Vigilance
Banks might request more detailed information about your income and expenses. Be ready to explain:
- A dip or surge in income
- Any historical gaps in your trading history
- The nature of your business or the stability of your industry
Use Your Accountant Wisely
Your accountant can help you with this to maximize how mortgage-friendly your income will look. They may advise you, for example, to change the amount of profit you take, or delay some of your costs until after mortgage approval.
Real Client Story
One of our recent clients, a freelance graphic designer from Wimbledon, had only two years’ accounts but was steadily earning. Having considered her case, we were able to secure her a lender who considered her day-rate estimate and negotiated for a two-year fixed-rate rate. She bought her new apartment in 8 weeks.
Conclusion
Being self-employed does not prevent you from getting a mortgage. With the right guidance and lender, you can still achieve competitive terms. Oportfolio has vast experience in guiding professionals like you to find mortgages that match your individual case.
Need expert mortgage guidance tailored to your self-employed needs? Get in touch with Oportfolio today and have your mortgage experience stress-free.
