Self-Employed Mortgages

More common than you think

Regardless of whether you earn 100% of your income from being self-employed or only a small part, we have the expertise to negotiate the best mortgage for you.

Self-Employed Mortgages South Coast

How easy is it to find a mortgage if you are self-employed?

Of course, it is never as easy as being an employee. If you are a Director of your own company, then so long as you own more than 25% of the shares, you will be regarded by most lenders as self-employed. If you look at your self-employed accounts for the last three years and take an average amount, that will be the starting point for your income. Merely looking at the best month in the previous year and multiplying that by 12 (you would be amazed by how many people do this) – that's wrong. The average of the last three years net profit (not Gross Profit – Net) and then build the picture from there.

Will my professional circumstances affect the kind of mortgage I can get?

Lenders in the UK all have underwriting committees that will consider any application on its own merits. If you are starting out in your career in a well-known profession, maybe accountancy or law or medicine, then your career path will dictate your earnings now and in the future. Your income will rise over the years, so your accounts will always be looked on more favourably and the income multiple, the amount that you can borrow, will increase.

Will the rates be different for someone who is self-employed?

The rates will be different if you are self-employed – no doubt about it. The rates will always be higher – reflecting the increased risk that all self-employed people represent - but not ‘that' much higher. The same principles will apply as for employed people, that is regular, provable income. Any indicators that the risk to the lender is less is a good thing.

Some of our best current mortgage deals for Isle of Wight*

What information do I need for self-employed mortgages?

To some degree, it depends on exactly how much of your income is ‘self-employed'. It is very common for people to have multiple sources of income – being an employee, having some self-employed income, maybe some Buy-2-Let income, perhaps some Airbnb income, or some dividends – all will be shown on your SA302 (a summary of your SA100) for each year.

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Frequently Asked Questions: 

How much can I borrow?

Every lender will be different in their approach in terms of to what you can borrow – there simply is no set formula. The actual amount that you are eligible to borrow will be determined by the cost of the property you wish to purchase, the size of deposit you have, your income and affordability (taking into account your monthly financial commitments and any future commitments). As a complete rule of thumb – and it is different from all

Do I need insurance/protection with my mortgage?

No you do not. Legally. However - many lenders will insist that when you take out a large debt, you should consider protecting it against the unthinkable like death and serious illness, even long term illness. Protecting the mortgage used to be a requirement by every lender – now it is optional. It is very sensible though – Term Assurance to protect your mortgage payments – Critical Illness Policies to protect against serious illness

Do I have to repay my mortgage by a certain age?

No - not by some arbitrary age limit. However - your agreed mortgage term will be decided by any lender on the basis of what you can afford. It was not that long ago that most mortgages went to Age 60, then to 65, then to 70 and more and more lenders are now offering 75 and even 80/85 years of age.

Where can I get more information?

Please visit our FAQ page here or contact Bram directly and/or get a confidential & professional call back from Bram here.

Call Bram Vis now...

London West End office:

020 7504 1090

Isle of Wight office:

01983 642 643