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EXPERT ADVICE

Mortgages for the self-employed

Self-employed, and wondering if you can get a mortgage? ESPC Mortgages’
David Lauder looks at what’s possible, and the criteria involved.

efore the COVID-19 pandemic and The good news is that mortgages for the
the subsequent cost-of-living crisis, self-employed are returning to being treated
Bmortgages for the self-employed were in a normal way. Different lenders will have
commonplace – the only difference to an different criteria, including required documents
employed applicant’s assessment was certain and your self-employed status, but the below
documents required to evidence income. gives a general overview of what to expect.

However, the pandemic and the difficult Sole Traders and Partnerships Finally, a more regular feature of assessment you find the most suitable solution, tailored to
economic climate in the years since, has Most lenders will want at least two years’ for all self-employed applicants is that lenders your circumstances.
caused lenders to tighten their criteria, to self-assessment tax returns showing level of will likely request the last three months of
assess the effect on self-employed people and income, along with an up-to-date tax summary business bank statements to confirm strong Get mortgage advice today
how sustainable their business is. overview. The golden figure they’ll refer to trading, consistent with the figures provided. ESPC Mortgages is a team of independent
here is the Net Profit Figure, and lenders will, in mortgage advisers based in Edinburgh. With
most cases, work from the average of the last To summarise, no case is the same, and many years of experience, they are well-placed
two years to determine your level of borrowing.
different lenders will assess self-employment to help you purchase your first property. Get
status in different ways. The experts at ESPC in touch with the team on 0131 253 2920 or
Limited Companies Mortgages can provide a useful guide to help fsenquiries@espc.com.
This is assessed in a different way – lenders will
still look at the last two years, but normally
base figures on the client’s salary taken
as a director, coupled with dividends.
Some lenders may consider salary
with net profit instead, but you
should seek mortgage advice to
see what would be most suitable.

Lenders will either use the last
two years of self-assessment
tax returns, or the last two
years of business accounts,
with a Chartered Accountant’s
reference – the figures used must
be no more than 18 months old. The information contained in this article is provided in good faith. Whilst every care has been taken in the preparation of the information, no
responsibility is accepted for any errors which, despite our precautions, it may contain.
The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages’ charges for mortgage advice
are usually £395 (£345 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR
OTHER LOANS SECURED AGAINST IT.

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