We receive a lot of questions to our Truro office about how to apply for a mortgage if you’re self-employed.

There are many perks to being a professional that answers only to yourself. But with the pros come a few cons.

And one of the biggest challenges to being self-employed in the current market is applying for a mortgage.

Rental prices are high across Cornwall. The county is a desirable place to live so there is a year-round demand for housing. And because demand for housing is strong, prices are high and rising.

But if you’re looking to jump onto the property ladder, being self-employed shouldn’t prevent you from getting your first mortgage. But knowing where to look for advice will help.

Most lenders will ask for a 5% deposit – and your deposit must be ready when you make your application.

Credit checks will review your address history and you must prove you are eligible to buy property in the UK. Present you proof of ID (passport or driver’s licence) and bank statements to prove your income.

Self-emplOyed or sole trader?

Sole traders also need extra evidence that proves they are a reliable investment. So if you’re a sole trader you will need to provide one year’s accounts or an SA302 form that is less than 18 months old.

If you’re a freelancer or limited company contractor, you’ll need to prove that you’ve been working as such for a minimum of 12 months’. And you will need at least six months remaining on your current working contract.

Many lenders need extra information when they make the checks for a self-employed mortgage application, such as past accounts. Make sure you have easy access to all this information before you start your application process to keep things running smoothly. 

For mortgage advice if you’re self employed, contact us for a confidential discussion, with no obligation.