| Modern accounting practices are often aimed at reducing the apparent income of the self employed. So while many applicants may have significant income available traditional mortgage calculations would be based on the lower apparent income provided by the accounts. |
| If you are able to provide satisfactory accounts and a suitable income to base a mortgage on you should be able to get a traditional mortgage on similar terms to an employed person. |
| The usual income multipliers are used to calculate the maximum loan. This is commonly up to 3.5 times one person's earnings or 2.75 times the joint earnings of a couple seeking up a high percent of value mortgage. |
| Alternatively if this does not suit you a Self Certification Mortgage may be the answer. |
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| With a self certification mortgage you self certify your own self employed income. No need for 3 years of accounts or for an Accountant to supply details of income. |
| Not self employed but have difficulty proving your income - see our general self cert mortgage page. |
| As specialists mortgage brokers in the field of self employed mortgages we can tailor a self cert mortgage to suit your circumstances where no or little proof of income is required. |
| Many mortgage lenders have recognised that proving income can be a problem for the self employed and are providing self certification mortgage products to suit most cases. These specialist mortgages for the self employed are now well established and competitively priced. |
| A self employed mortgage can be based on a repayment or an interest only basis. You will also be able to choose from deals here - including fixed or variable rates, capped rates or discounts and tracker products. Any deals on offer will mostly be available for 1-5 years before reverting to standard variable rates or a base tracker product. |
| You can even take out a flexible mortgage, ideal for many self employed borrowers, who are more likely to have a variable income. When business is good, you can channel any spare cash into overpaying on your loan, while in a quiet period you can reduce your payments. You can even plan such variations if, for example, your income is seasonal. |
| How Much Can I Borrow? |
| The usual income multipliers are used against the income you certify. This is commonly up to |
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3.5 times one person’s earnings or |
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2.75 times the joint earnings of a couple seeking up a high percent of value mortgage |
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However if you are able to make a significant deposit, then up to 5 times one person’s earnings may be available |
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self cert mortgages for the self employed are available up to 90.0% of the property value. |
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| Please note self certification is not a method of borrowing amounts far larger than you can sensibly afford by grossly over inflating your true income. |
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What you can actually afford to pay will depend on your individual circumstances, liabilities and outgoings |
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The experts say limit repayments to no more than 40 per cent of what you earn after tax |
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Being Self Employed often means an erratic income so be realistic about what you can really afford |
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If you opt for a variable rate mortgage remember your payments can go up or down. |
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| Your home may be repossessed if you do not keep up payments on you mortgage. |
