Documents Needed for a Self-Employed
Documents Needed for a Self-Employed Mortgage
There is actually no such thing as a Self-Employed mortgage, you will be able to access the same mortgage products as PAYE employed people. The difference in how you will have to prove your income. It can be better to approach specialist lenders who understand your circumstances being Self-Employed which can be easier to find through the expert eye of a mortgage broker.
It is important to ensure that you are ready for the commitment of a mortgage and understand the repayments on your mortgage. When applying for a mortgage lenders will look into your income to check that you can afford the mortgage that you are applying for.
What specific documents do you need as a Self-Employed?
As a Self-Employed borrower, you will need to provide SA302 forms as well as tax overviews and tax calculations to prove your income and that you have filled your taxes correctly. Some lenders will require you to use a chartered accountant or even their chosen accountant; they may even ask for up to two tax years worth of proof. You will need to bring tax proof no matter if you are a sole trader or part of a partnership so make sure you have them to hand.
You will need to provide any contracts if you are a Contractor and any upcoming ones too. If you have retained profits in your company then you may need to find a specialist lender who will be willing to include this in your overall income.
You will obviously need the standard documentations too such as proof of identification and utility bills which are no less than three months old. You will need to provide bank statements too and will undergo a credit check.
It is best to ensure you have all your documents in check before approaching a lender. It is also important to get your finances in order, if you have any unpaid debts make sure to try and clear them if you can before approaching a lender. This will ensure you get more suitable rates as opposed to bad credit mortgage rates which can be higher.
How do you improve your chances of being accepted onto a mortgage as a Self-Employed applicant?
Make sure you are using a professional accountant and seek help from mortgage brokers too- they know the mortgage market and can even help you find an accountant too. You should find out what is going to be the best option for you in terms of your taxes.
Get your finances in order in order to approach a lender with the best possible credit rating that you can. You should ensure that you have not got any old accounts open in your name and that all debts you owe are paid off. If a lender sees that you are not reliable with repayments, you will be deemed a high-risk borrower and could end up paying higher interest rates.
How can a Mortgage Broker at One MP help me with my documents as a Self-Employed borrower?
Here at One MP, our Mortgage Brokers understand the ever-changing mortgage market and can advise the right lender for your circumstance. They will tell you which documentation you will need to gather alongside your Self-Employed mortgage application and can help you find an accountant if you haven’t approached one already.
Failed mortgages can leave a mark on your credit file, so it is worth speaking to a mortgage broker to talk through your options, especially if you haven’t been Self-Employed for very long or you are worried about your credit score.
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