Mortgages for self-employed people
Last Updated on 26 April 2021
I’ve had a flurry of questions recently about whether self-employed people or PAYE freelancers can get mortgages.
The short answer is yes – but there aren’t so many options. Usually the deposit has to be bigger, and some lenders like to see the last two years worth of accounts so that they can work out a typical profit figure.
It’s a good idea to talk to a few mortgage brokers if you’re self-employed. They should be able to point you in the direction of something that fits your circumstances. Don’t just rely on the high street lenders.
Generally the most recent year is used as the figure to multiply up. So my eye was caught by this news from Santander last week:
It makes sense to ignore the last year if a self-employed person has had a rubbish year. But of course that means they would need to see accounts for the previous year too.
In fact there is a bit of movement in the mortgage market as a whole. Some lenders are feeling confident enough to extend lending to people who have just a 5% deposit. The FT has more here (£).
Posted on 26 April 2021