Getting a mortgage as a freelancer or as self-employed is in many ways no different than getting a mortgage if you were in full-time employment. However, there is a lot of misunderstanding around applying for a self-employed mortgage.
Although we tend to use the terminology ‘self-employed mortgage’, there are no specific mortgage products or lenders that you need to go to, it’s just the term used when lenders tailor a mortgage to the needs of the customer.
You have access to the same lenders and mortgages as someone in full-time employment.
However, there is a higher level of risk involved for the lender so the assessments they make on you are likely to be slightly different. You will need to meet the lenders individual criteria and as a freelancer or self-employed professional you will need to provide them with information about your income.
Providing information and proof of your income is the biggest and most important difference in getting a mortgage as a freelancer or self-employed individual. It can also be the biggest concern when looking to get a mortgage.
In general, self-employed and freelance professionals will need to provide the following:
- Evidence of one-year trading
- A record of regular work or future contracted work
- One year’s accounts as a minimum (which have been submitted to HMRC as a SA302 – Self Assessment)
It can be beneficial in these circumstances to seek advice from a specialist mortgage advisor who can talk you through your options and use the whole of market to match you to a lender based on your needs. It could save you time and money.
Start by seeing how much you could borrow as a contractor or self-employed with our free mortgage calculator.
Different requirements apply if you’re a contractor, please see information about mortgages as a contractor.