🏡 Attention all self-employed individuals in the UK! 📢
📋 We understand that securing a mortgage can be a daunting task, especially when you're self-employed. But fret not, because we're here to simplify the process for you! 🤝
📍 Let's dive into the mortgage criteria that you need to keep in mind while applying for a mortgage in the UK:
1️⃣ Proof of Income: As a self-employed individual, it's important to provide evidence of your income. This could include your business accounts, tax returns, and bank statements. Lenders generally assess your income based on your average earnings over the past two or three years so you'll definitely need a tax returns and proof that the tax has been paid
2️⃣ Employment History: Lenders will look at your employment history to evaluate your stability. If you've been self-employed for a shorter period, they may require additional documentation to assess the sustainability of your business.
3️⃣ Credit Score: Your credit score plays a crucial role in securing a mortgage. Ensure you have a good credit history, as it demonstrates your ability to manage financial commitments. Keep your credit card balances low and within 30% of the credit limit and make timely payments to improve your score. Missed payments won't look good!
4️⃣ Deposit: Saving for a deposit is essential. Aim to save at least 10-20% of the property's value. Having a larger deposit can also lead to better mortgage rates and more favourable terms.
5️⃣ Affordability Assessment: Lenders will assess your income against your outgoings to determine your mortgage affordability. Be prepared to provide details of your regular expenses, including any outstanding loans or credit commitments.
6️⃣ Accountant's Reference: Some lenders may ask for an accountant's reference to verify your income and business stability. Ensure your accountant is well-versed in providing such references to support your mortgage application.
💼 By keeping these criteria in mind, you can increase your chances of obtaining a mortgage successfully. Remember, every lender has their own specific requirements, so it's crucial to seek professional advice tailored to your circumstances. 💼
🔎 At Bricks and Mortar, we specialise in assisting self-employed individuals in their mortgage journey. Our experienced team can guide you through the entire process and help you find the best mortgage deal that suits your needs.
💻 Contact us today to discuss your options and make your dream of homeownership a reality! 📞🏡