With news that lenders are tightening affordability for the self-employed, here the Dos and Don'ts of Self-Employed Mortgages:
- Do. Keep up-to-date records and accounts.
- Do. Hire a certified or chartered accountant to prepare your accounts and tax return.
- Do. Speak to a mortgage broker about your options.
- Do. Speak to your current lender if you’re self-employed and want to re-mortgage or move house.
- Don’t. Minimise your income too much for tax purposes – it will affect your chances of getting a mortgage.
- Don’t. Assume it’s impossible to get a mortgage if you’re self-employed – it’s not.
The key change for self-employed workers is the need to prove your income to any mortgage lender you apply to. Most will want to see at least two years’ accounts or tax returns. The more accounts you can show the better. You'll need...
- Two years' accounts
- An accountant
- A track record of regular work
- A healthy deposit
- A good credit history
