In today’s post, I will be sharing some tips to get self-employed mortgages.
You might have heard that getting a mortgage is impossible if you are self-employed. Well, this is just a misconception. Getting a mortgage is challenging and frustrating for freelancers, contractors, and self-employed workers, but not impossible.
This is because self-employed workers have to prove a reliable income. To help you get a mortgage, I have mentioned top tips.
Keep Your Finances Organized
One of the first things you have to do is organize your finances. This will increase the chances of getting a mortgage for self-employed. There are numerous ways to do so: you can hire an accountant or do it yourself, or you can use accounting software.
Boost Your Chances
There are several ways to boost your chances of getting mortgages if you are self-employed.
- Check your credit rating.
- You should check your credit report and make sure there are no mistakes.
- It is imperative to talk to a mortgage broker before applying for a mortgage. An expert will guide you and make the process less complicated.
- Try to save a lot for depositing.
- It is crucial to get on the electoral roll.
- You must avoid buying properties like old buildings, or flats above commercial premises. This is because the lenders are less willing to lend for such properties.
Documents That You Will Need
When applying for a mortgage, you will need a lot of documents, depending on the type of your business. Some of the documents you must have include:
- Bank statements
- Proof of income
- Proof of deposit
Keep Your Accounts Up to Date
Another great tip to get a mortgage is to have updated accounts. For instance, you are self-employed for over 3 years, then it will not be difficult for you to get a mortgage if you have up to date accounts.
In case you have less than 3 years of accounts, it might be tricky to get a mortgage since it will be difficult for the lender to determine if you will have a stable income or not. Showcasing a steady stream of projects might be useful along with a big deposit.
Have a Proof of Steady Work
To get a mortgage when you are self-employed, you have to prove to the lender that you have future work planned. Let’s say, you are a contractor, you must show the projects you will be working in the future. This is essential to show you will have enough income.
Restrict your Expenses
To increase the chances of getting a mortgage, you must reduce your outings and expenses for a few months before applying. This means you will have to cut back on spending that will be deemed as a luxury. For instance, you wanted to buy a new laptop. It will have to wait if you want to get a mortgage.
If you want to know about self-employed mortgages, here is a complete guide. Think Plutus is a leading mortgage adviser having a team of experienced and skilled professionals. Kindly contact us for more information or visit our website.