If you are self-employed and looking to buy a home, you will have a few concerns. There are many benefits associated with being self-employed, but there are some drawbacks too. Over the years, many people in self-employment have struggled to obtain a mortgage.

However, times are changing. The number of people classed as being self-employed is significant and rising. Lenders are aware this is an important market, and being self-employed is no barrier to obtaining a mortgage and paying it off as expected. There is no reason for self-employed people to be concerned about applying for a mortgage, but here are essential self-employed mortgage tips you must know.

Use a qualified accountant as opposed to a book-keeper

To improve your chances of obtaining a mortgage, you should look to provide mortgage lenders with what they are looking for. A sizable proportion of mortgage lenders only accept proof of income when it comes from a qualified accountant, as opposed to a book-keeper.

Using the services of an accountant can save you a lot of time and heartache while ensuring you use your money for a service that assists you in obtaining a mortgage.

If you can, maintain trading style in the build-up to applying for a mortgage

You will aid your process by having consistent records. Therefore, it is best for you to manage your trading style as best you can before you make your mortgage application. Anything which complicates matters can lead to delays, or even provide lenders with a reason to refuse your application.

Speak with a mortgage adviser as soon as you can

It is best to speak with an expert to get tips that are relevant to your status. As you are self-employed, you have probably given prior thought to the differences between sole trader status and operating as a partnership. Your level of net profits will influence a lenders’ decision, so make sure you make the right choice that will strengthen your application.

Will an offset mortgage work for self-employed people?

An offset mortgage may be a suitable option for self-employed people. If you have tax savings or you have retained profits, it is essential you ensure these work for you. By linking these elements to your mortgage via a suitable savings account, you make yourself a more attractive proposition for any lender.

Check your credit score

Checking your credit score is excellent advice for anyone applying for a mortgage, but if you are self-employed, you want to improve your chances of being approved. Therefore, review your credit score, and if you can take steps to enhance your score, do so before you apply for a mortgage.

Save as much of a deposit as you can

It should go without saying, but the more significant your deposit, the better your chances of obtaining a mortgage. If you have savings, using them as part of your mortgage application will help you get on the property ladder.

While being self-employed is a great thing for many people, it does pose challenges. If you’re self-employed and looking to apply for a mortgage, you need all the assistance you can find. We aim to provide you with the best support at all times, and did you know that we can get self-employed people a deal with one years accounts? If you need help from a company that knows what you need, we are here to help.

Contact Mortgage Simplicity, and we’ll do everything we can to provide you with the support and guidance you need.

If you are looking for guidance in arranging a mortgage, contact Mortgage Simplicity, and we will be more than happy to assist you.