Self-employed Mortgages

Mortgages tailored for directors in the UK aim to assist self-employed directors of limited companies, including freelancers, in securing housing loans. Unlike conventional mortgages reliant on proof of a consistent salary, director-specific mortgages evaluate trading history, income, and related factors.

Trading history significantly influences a director's mortgage prospects. Lenders favor directors with established trading records, providing assurance of sustained income.

• Securing a mortgage within the initial year of trading proves challenging. Lenders typically demand larger deposits and may request additional income verification.
• Directors trading for 1 - 2 years may qualify for a mortgage but may still require supplementary income and affordability evidence.
• With a trading history of 2 - 3 years, mortgage eligibility improves, potentially requiring a lower deposit. However, interest rates might be slightly elevated due to perceived risk.

Securing a mortgage with less than a year's trading history poses challenges. Specialized lenders may consider applicants with shorter trading spans but often demand increased deposits and potentially higher interest rates.

Embarking on self-employment and aspiring to homeownership marks a significant achievement. However, self-employed individuals often wonder about mortgage accessibility and requisite accounting years for lender consideration.

The positive trend? Securing a self-employed mortgage in the UK is becoming more accessible, reflecting the rising number of self-employed individuals. While obtaining a mortgage as a self-employed individual has become less arduous, consulting a self-employed mortgage specialist can expedite the process and offer peace of mind.

Our Mortgage Broker specialises in self-employed mortgages, ensuring efficient and tailored solutions for your housing aspirations.