The self-employed life comes with a lot of perks. For some people it just means starting your own business in the career path you’ve already set off on, for others it means taking a chance on setting a whole new business idea into motion. You make take the journey for self-satisfaction, or because you believe it will be more prosperous.
Becoming your own boss set you free in some ways, you choose your clients, your work load, you do things how you like, but it can be a burden in others. Things can be going swimmingly one moment, but the future of your business is unpredictable and lacks security.
Of course, you’ve weighed up the pros and cons of going self-employed along with the rising percentage of UK workers who are increasingly choosing this option, but how might it affect you when it comes to securing a mortgage and owning your own property?
Will My Self-Employed Mortgage Application be Accepted?
While the tax laws are changing around self-employment, particularly for the higher earning contractors, and some of the perks are not as enticing as they once were, there are still numerous benefits of working for yourself, and luxuries like mortgages are certainly not off the table.
Sure, lenders can be put off by your unreliable source of income, but being self-employed alone will not make them more likely to turn you down. If you are self-employed, lenders will ask to see 2-3 years of accounts, and some may even accept accounts just shy of 2 years. If from this they can gauge that you have a steady, reliable income that is likely to persist, your employment status will not stand in your way of you owning a home.
How Can I Increase My Chances of Being Accepted?
As with applying for any mortgage, it is important to focus on key things such as your credit history, a hefty deposit and borrowing within reason. As long as your credit history is in check and your income appears steady, the odds should be in your favour.
Self-cert mortgages are a thing of the past preventing freelancers from declaring their own income without really proving it and ultimately borrowing more than they can afford. Therefore, sticking to the standard mortgage guidelines is the best way to boost your chances of having your application accepted.
Are There Special Mortgages for Self-Employed Workers?
There are plenty of different mortgage offers out there, many catered specifically for the self-employed. If comparing the different options is overwhelming or you don’t know what to look out for, it may be best to go with a trusted mortgage broker such as Habito who can help you sift through the options, pick out the most relevant deals, and potentially increase your chances of being accepted by singling out agreements that best suit your circumstances.