Self-Employed Mortgages

While this is easier said than done, providing a larger-than-average deposit can be very beneficial to your application. This is because the loan-to-value ratio of your mortgage product will be reduced, essentially meaning that a lender will be lending you a lower percentage of the property value.

This means that less of their capital will be at risk in your property, which can not only increase your chances of success, but also allow you to unlock competitive mortgage products with lower interest rates.

Your credit plays a big part in a lender’s affordability assessment, so having a good credit score when applying can help your case. A good credit score demonstrates to lenders that you are able to borrow money and repay it on time and in full.

If you have a bad credit history, you will be seen as a riskier borrower, which can lead to your application being rejected or certain requirements be put in place by your lender. Two common things that bad credit applicants may have to accept is higher interest rates or larger deposit requirements.

If you have a less-than-perfect credit history, give our guide a read as it highlights some of our top tips on how to improve your credit score.

At Just Mortgage Brokers, we secure exclusive deals through our strong lender relationships, increasing your options and chances of success.

Our specialist self-employed mortgage advisors understand the complexities of self-employment and will be able to assess your unique situation, recommend the right lender and product.

If you want to get started, reach out to organise a free initial consultation.

Using retained business profits for a mortgage can be challenging, however, it is possible to find lenders who will consider your retained profits.

Most mainstream self-employed mortgage lenders calculate affordability based on salary and dividends. Therefore, you may need to use a specialist lender who will look at your retained profits, in turn this could allow you to borrow more.

Typically, you won’t be able to get a mortgage solely based on your dividend income, as many mortgage lenders wont consider it as a stable source of income.

Instead, lenders will look at your dividend income in addition to things like your salary to give them a rounded idea of your affordability.

No, you will always need to prove your income to lenders. The process may involve verifying income with HMRC. One of the key things that lenders need to assess is a potential applicant’s affordability, as they want to know you can afford to make your monthly mortgage payments.

Yes, self-employed individuals are able to get mortgages even if they have bad credit.

However, securing a mortgage with a bad credit history can present a significant challenge depending on the severity of the credit event(s) and time that has passed since.

You’ll be please to know that we specialise in bad credit mortgages and can help you acquire a mortgage product, even with a less than perfect score.