If you're one of the 4.39 million self-employed people in the UK, you're likely enjoying the freedom and flexibility of working for yourself. However, securing a mortgage can be one of the biggest challenges of self-employment; whether you're a first-time buyer or looking to remortgage. Being prepared can make the process much smoother.
At the Vernon, we're here to help you buy your own home, even if your situation is unusual. We pride ourselves in offering a friendly, personalised service, offering straighforward advice from start to finish. If you have more questions, get in touch.
Can I get a mortgage with an irregular income?
Lenders usually prefer borrowers with steady incomes because it makes mortgage approval easier and more predictable. However, if you're self-employed with a fluctuating income, don’t worry - you may still get a mortgage by providing extra proof of your earnings.
Can I get a mortgage without 2 years' paperwork?
Most high street lenders require self-employed borrowers to provide tax records, account details, and dividend documents from the past two to three years. Anything less can make it harder to prove affordability.
At the Vernon, we take a different approach. While having less paperwork may make the process less straightforward, we don’t rely on a strict checklist. Instead, we assess each application individually, considering your unique financial situation to give you a fair and flexible decision.
Discover more of our mortgages here.
Will the current climate affect my chances of getting a mortgage?
The changing economy has impacted many businesses, affecting profits and losses. As a result, many lenders have become more cautious and stricter about affordability.
You may need to provide additional documentation covering your recent trading activity. However, at the Vernon, we will assess any applicants' inidividual circumstances.
When it comes to self-employed mortgage applications, it can sometimes feel as though it is solely in the hands of the lender. But there are a number of things you can be doing or avoiding to feel in control and help you secure your mortgage offer.
If you still have questions after reading below, take a look at our mortgage FAQs.
Looking after your credit file
Your credit score is a digital footprint of everything you purchase and subscriptions that you keep. It is also records missed payments on these bills. It’s really important for you to keep a close eye on this and ensure regular payments are paid on time. This will avoid any red marks being made against your name which could affect your chances of getting a mortgage. However, at the Vernon, we are prepared to listen to your circumstances and don't make a decision based on your credit score.
Disclosing your finances
You should be upfront and disclose your business and personal finances to your lender, even if you feel it may act as a hindrance in your application. Being honest and transparent will work in your favour, as it will enable you and your lender to work together to find options for you. Enlisting the help of a broker may also help this.
Keep yourself organised
Keeping organised is an important skill when applying for a mortgage - especially if you’re self-employed. Gathering the appropriate paperwork, keeping track of your credit score and slowly but surely saving up a chunk of deposit, will all help you secure a mortgage for your home.
If you're are self-employed and are looking to get on the property ladder - or even find your next dream home - please get in touch. We’re on hand to discuss your mortgage plans either in person in branch or over the phone.
You can discover our range of mortgages here.
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