If you are self employed and cannot prove your earnings to mortgage lenders through PAYE P60 forms, you can apply for a self-employed, or self-certification mortgage. They are harder to find these days, as lenders are less willing to take on the risk without evidence that the loan can be repaid.
If you do apply for a self-employed mortgage, you will typically have to prove your earnings by providing three years’ worth of audited accounts for your business showing your profitability and cashflow. Due to the perceived risk, self-employed mortgages will usually require you to pay a larger proportion of the property price as a deposit, and the interest rates charged on the loan will usually be higher than standard mortgages as this is the lender’s way of pricing riskier loans at a higher price.
We can put you in touch with a mortgage adviser who will be able to help you explore all the suitable mortgage options available to you, and you may also want to seek help from a financial adviser who can help to prepare your accounts.
Questions you might like to ask a mortgage adviser…
- Can I apply for any conventional mortgages?
- What percentage of the property value will I need for a deposit?
- Will my mortgage be approved if my accounts don’t show profitability?