Mortgages for the self-employed is gradually improving and there is a growing appetite to lend to this previously under-served proportion of the workforce. Initially driven by specialist providers, over recent months there have been more lenders looking at improving the way they look at borrowers who are self-employed.
Going through a mortgage adviser will give you access to a wider range of products but there are some other things to consider.
For established businesses, such as those who have a two year proven track record there should be no issue at all, however, those who have moved to this basis more recently may still have a handful of choices available, providing they have previous experience in their chosen field.
Lenders find it difficult to assess people who are self-employed so keeping comprehensive records will help to evidence your financial position. If you’re struggling to record a long history of your accounts then try to save as much deposit as you can to increase the rates that are available to you.
It’s also worth speaking to your accountant as the way they structure accounts for tax purposes will materially affect the size of the mortgage you can access. Ask them to plan for your remortgage or house purchase so that income and accounts reflect your true ability to afford the mortgage you want.