Self Employed Mortgages in Reading
If you are self-employed and considering buying a property or remortgaging, you may be wondering whether getting a mortgage is more difficult. While mortgage lenders often require additional documentation from self-employed applicants, many lenders are happy to offer mortgages to business owners, contractors and freelancers.
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At Mayfield Mortgages, I provide expert mortgage advice for self-employed clients in Reading and the surrounding areas, helping you understand lender requirements and explore suitable mortgage options.
Can Self-Employed People Get a Mortgage?
Yes, many lenders offer mortgages to self-employed applicants. The key difference compared with employed applicants is how income is assessed.
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Instead of using payslips, lenders may review documents such as:
• SA302 tax calculations
• tax year overviews
• company accounts
• dividend payments
• bank statements
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The exact documentation required can vary between lenders.
How Many Years of Accounts Are Needed?
Many mortgage lenders prefer to see two years of accounts when assessing a self-employed mortgage application. However, some lenders may consider applicants with one year of accounts, depending on their circumstances.
Lenders will typically look at:
• your declared income
• the stability of your business
• your credit history
• your deposit size
Understanding which lenders may be suitable can make the process much smoother.
How Much Can Self-Employed Applicants Borrow?
Mortgage lenders usually base borrowing amounts on affordability assessments, often using a multiple of your income.
Depending on the lender and your financial circumstances, borrowing may be around four to four-and-a-half times annual income, although this can vary.
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Lenders will also consider factors such as:
• existing financial commitments
• credit history
• property value
• deposit size
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A mortgage advisor can help estimate how much you may be able to borrow.
Self-Employed Mortgage Options
There are several types of mortgages that may be suitable for self-employed applicants depending on their circumstances.
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Examples include:
• mortgages for sole traders
• mortgages for limited company directors
• mortgages for contractors and freelancers
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Different lenders may assess income in different ways, which is why independent advice can be helpful when exploring mortgage options.
The Mortgage Process for Self-Employed Applicants
Applying for a mortgage when self-employed generally follows a similar process to other mortgage applications.
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Typical steps include:
Initial Consultation
We discuss your financial circumstances and property plans.
Mortgage Research
Suitable lenders and mortgage products are identified.
Mortgage Application
Your application is submitted along with required documentation.
Mortgage Offer
Once approved, the lender issues a mortgage offer and the property purchase can proceed
Why Speak to a Mortgage Advisor?
Self-employed mortgage applications can sometimes involve more detailed income assessments compared with standard mortgage applications.
A mortgage advisor can help by:
✔ identifying lenders who accept self-employed applicants
✔ explaining documentation requirements
✔ guiding you through the application process
✔ helping you understand your mortgage options
Our aim is to make the mortgage process as straightforward as possible.
Self-Employed Mortgage FAQs
Can I get a mortgage with one year of accounts?
Some lenders may consider applicants with one year of accounts, although criteria can vary depending on the lender and the strength of the application.
Do self-employed people need a larger deposit?
Deposit requirements are usually similar to standard mortgages, although a larger deposit may provide access to more mortgage options.
What documents do lenders require?
Common documents include SA302 tax calculations, tax year overviews and company accounts.