Getting a mortgage when you're self-employed can be more challenging than if you were employed by a company. This is mainly due to difficulties in proving income and demonstrating a stable source of earnings. Lenders may require several years of accounts, tax returns, and bank statements to assess your affordability, which can be time-consuming and challenging to compile. Irregular income can also make it difficult for lenders to assess your ability to make mortgage repayments in the long term. However, there are steps you can take to improve your chances of securing a mortgage, such as improving your credit score, having a large deposit, and working with a specialist lender or mortgage broker.
A guide to...
Getting a mortgage when you're self-employed in Mirfield can be a little more challenging than if you were employed by a company. However, there are several steps you can take to increase your chances of securing a mortgage.
-
Improve Your Credit Score: Your credit score is a key factor that lenders consider when assessing your mortgage application. Therefore, it's important to ensure that your credit score is as good as possible. You can do this by paying off any outstanding debts and ensuring that you make all future payments on time.
-
Get Your Accounts in Order: Lenders will want to see proof of your income, so it's important to have your accounts in order. This includes having up-to-date accounts that have been submitted to HMRC, and ensuring that your tax affairs are in order.
-
Prepare Your Paperwork: When applying for a mortgage, you'll need to provide a range of paperwork, including your self-assessment tax returns, bank statements, and proof of income. Make sure you have all the necessary paperwork in order before you apply.
-
Consider Using a Mortgage Broker: A mortgage broker can help you navigate the mortgage application process and find a lender who is willing to lend to self-employed individuals. They can also help you prepare your paperwork and ensure that your application is presented in the best possible light.
-
Consider a Specialist Lender: Some lenders specialise in providing mortgages to self-employed individuals. While these lenders may have higher interest rates, they may be more willing to lend to you than a mainstream lender.
-
Have a Large Deposit: Having a large deposit can increase your chances of securing a mortgage. This is because it reduces the lender's risk, as they have a greater level of security in the property.
-
Show Consistent Earnings: Lenders will want to see evidence of consistent earnings over a period of time. Therefore, it's important to show that your income is stable and that you have a regular stream of income.
In summary, getting a mortgage when you're self-employed in Mirfield requires a little extra effort, but it's definitely possible. By taking the steps above, you can improve your chances of securing a mortgage and getting the property you want.