Mortgages for the self-employed – shall we just forget about last year?
27th May 2021
If you’re self-employed (a sole trader, partnership, or limited company director), you’d be forgiven for thinking that the odds are always stacked against you when it comes to getting a mortgage. Add to the usual challenges are year of lockdowns, furlough and government grants and for many self-employed the thought of getting a mortgage seems like a long shot.
However, if you take independent advice you might be surprised. Lenders have started to set out how they propose to support self-employed mortgage applicants who have been affected by Covid and there is some cause for optimism. If you’ve had a bad 2020/21 financial year but can demonstrate you’ve bounced back and business is going well, then some lenders will be willing to ignore your ‘Covid year’ and work off your figures from 2019/20.
If you took a payment holiday of up to 6 months that shouldn’t have any impact on your chances of getting a mortgage now, but lender will still expect you to pass credit and affordability checks, so you need to have kept up with your agreed payments on any credit and the amount you’re looking to borrow must be affordable in the context of your regular monthly expenditure.
If you’re self-employed and looking to become a homeowner, move house or get a better deal on your existing mortgage we’d love to hear from you. Get in touch and we’ll be help you understand what’s possible, or sign up to our monthly newsletter, to keep your finger on the pulse.