Self-Employed Professionals – You Can Get A Mortgage
With self-employment figures in the UK reaching 4.8 million people in 2017, this is an important part of the workforce. By those figures, people in self-employment accounted for 15.1% of the labour force, and it wouldn’t be unreasonable to assume that this number has grown since. Therefore, self-employment is an integral part of the economy, and there is a need for these people to receive the support that people in traditional roles receive.
This is the case when it comes to mortgages. Traditionally, people who are self-employed struggle have struggled to arrange a mortgage. Some lenders have not welcomed their application while others have subjected the claims to rigorous testing. It is right that lenders apply strict criteria to mortgage applications. Still, the difficulties faced by many self-employed professionals have made many shy away from the thought of owning their home.
Nowadays, the market or economy cannot afford to overlook this group of potential buyers. With more than 15% of the labour force classed as self-employed, removing this group would significantly damage the number of potential buyers. Therefore, lenders have been tasked with finding ways to offer more options that are suitable for this group.
A growing number of lenders are offering mortgages which are tailored to the needs of people in self-employment. It is likely the process is slightly more arduous than the traditional mortgage application, but equally, it should be manageable. With people in self-employment more likely to be comfortable or experienced in tax-returns and financial matters, there is a grounding in these matters.
Be prepared for the mortgage application process
If you are self-employed and you want to apply for a mortgage, you must prepare yourself. There are many documents you will need to provide to the mortgage lender, so it makes sense to have these ready in advance of the application.
If you have a contract for any work you carry out, this will be useful to have. Also, if you can provide any contract history of the past three years, this will strengthen your application. It would be best if you were willing to provide two years’ accounts and at least three months of personal and business banking statements. You may also find it useful to offer a CV and breakdown of the work you undertake.
It would help if you made as compelling an argument as you can about your suitability for a mortgage. The more relevant information you provide to a lender, the more likely it will be that they will approve your application, or provide you with an acceptable offer.
It would help if you also spoke with experts
Applying for a mortgage is a stressful and challenging activity, but help is available. As a self-employed professional, you will understand the importance of calling on an expert to do the job they are trained in. This is likely how you receive job offers, and it makes sense for you to follow this approach when applying for a mortgage.