web analytics
Online Payment Login/Register
Contact Us
Can Self-Employed Individuals Get A Mortgage?

Can Self-Employed Individuals Get A Mortgage?

According to statistics, more than 40% of individuals in the United Kingdom with a history of declined mortgage application consider it an embarrassing failure. The important thing to remember if you’re one such person is that the only disappointment in this situation is with the advice you’ve been given regarding mortgage. Your actions to get a mortgage, though important, are not as vital as getting sound mortgage advice.

Industry research also reports that individuals avoid pursuing their dreams of getting a property because they think getting approved for a mortgage is a monumental task. Around 35% of people assume that they don’t earn enough and are not eligible, while 33% find the entire process of filing for a mortgage stressful and confusing. Hence, most people end up quitting without even trying.

In this article, we discuss all the ways you can get a mortgage in a stress-free manner if you are a self-employed individual. Also you can read more on Contractor Mortgages – How To Get One?

How Can You Increase Your Chances Of Getting A Mortgage If You Are Self-Employed?

The most important thing to remember here is that lenders consider more than just numbers when it comes to approving a mortgage. Following the tips given below can significantly improve your chances of getting a mortgage if you are a self-employed individual:

  • Talk To A Broker – All lenders have different criteria for approving mortgage applications. Hiring a broker as a first step will help you find the right lender for your needs who will be experienced and will know the building societies as well as banks that are the best bet for you.
  • Check Your Credit File – It is important to ensure that there are no adverse entries against you. One of the most important factors that decide the products that you can apply for is the credit rating. It also determines whether or not you get the best mortgage deals and rate.
  • Check If You Are On The Electoral Roll – This will help significantly with your credit score. You can verify the same with your local council.
  • Ensure All Your Accounts Are Updated – You must ensure an impeccable credit record to ensure you get the most competitive rates. Hence, pay everything on time and put all your transactions on direct debit whenever possible.
  • Hire An Accountant – Get your accountants in order with an accountant’s help. Many mortgage lenders ask self-employed mortgage applicants for business accounts that are approved by a certified chartered accountant.
  • Payday Loans Are A Big No – Payday loans reflect badly on your finances. Lenders often consider them as a financial burden on mortgage applicants and hence, tend to decline applications with recent payday loan records.
  • Minimise The Number Of Credit Checks – If you get multiple credit checks done in a short period of time, it can minimise your overall credit score. Hence, remember that using comparison sites can affect your credit history as lenders tend to run multiple checks to verify your credit behaviour.
  • Use Your Credit Card Wisely – You can damage your credit score significantly if you let your credit card reach its limit. Hence, it is a good practice to spread your outstanding balance across two cards instead of having a card on the limit.
  • Beware Of Making Minimum Payments – If you focus on making minimum payments each month to get by, lenders could consider you to be in financial difficulty. It is noteworthy that the minimum payments on your card will never pay the total debt if your card is interest-free.
  • Consult An Accountant If You Use Business Funds – If you are someone who takes regular withdrawals from your business account, it can result in a smoother underwriting instead of going with a large lump sum amount. In the case of the latter, the lender might verify from the accountant that this won’t affect the business adversely and can delay the processing of your mortgage application.
  • Get An Agreement – Most estate agents do not allow the viewing of the property or make an offer to applicants without an agreement. It is a good idea to get one as it confirms the maximum loan you can get and will also allow you to check out properties that lie within your budget.

Target Accounting – Allow Our Mortgage Brokers To Help You Out

The best way to improve your chances of getting a mortgage application approved is to consult with a broker who has experience in mortgages for contractors and self-employed individuals. Fortunately for you, this is where we can help you. At Target Accounting, we understand the needs of self-employed people and contractors and can help you with your mortgage application in a smooth and hassle-free manner. Allow us to find the best lender for you to improve your chances of getting a mortgage. Get in touch with us today for an expert consultation!