Mortgages
How difficult is it to get a mortgage if you are self-employed?
Over the years, it has grown increasingly difficult for first-time buyers and existing homeowners to get a mortgage; nevertheless, those who are self-employed have suffered the most.
Before the credit crisis, self-employed individuals may apply for a self-cert or self-certification mortgage, which did not require borrowers to provide proof of income in the traditional manner of bank statements and payslips. Unfortunately, exploitation of this system resulted in the prohibition of self-certification mortgages, making it far more challenging to obtain a mortgage if you are self-employed.
Who can get a self-employed mortgage?
Self-employed mortgages are no different from regular mortgages; nevertheless, the standards are significantly more stringent than those required for workers and employed.
Getting a Mortgage if you are self-employed
You are considered self-employed if you own your own business or own 25% or more of a business. It is not impossible to obtain a mortgage if you are self-employed, but it is more challenging. If you work for yourself and want to re-mortgage or purchase a new house, our mortgage partners specialise in self-employed mortgages and offer fast access to lenders.
What you need to get a self-employed mortgage
Typically, the key for self-employed employees is the requirement to establish income to lenders you apply to since lenders will want to ensure you can afford the monthly payments. When you are self-employed, proving your income might be a bit more challenging, but you should be able to do so provided you gather the necessary papers.
Normally you will require:
- 2 years accounts or HMRC self-assessment proof (although some lenders may look at 1-years’ worth of accounts)
- Continuity of work
- Deposit
- Acceptable credit rating
Key benefits of Evolves mortgage partners:
- Self-employed mortgage specialists
- Free initial appointment
- No obligation quotes
- Access to lenders that provide mortgages for the self-employed
Umbrella Mortgages
Can I get a mortgage working for an umbrella company?
Obtaining a mortgage through an umbrella business may quickly become quite complicated.
The following are some examples of questions that might be posed:
- Who hires you?
- Why don’t your pay stubs look like a regular employee’s paystub?
- Why do your pay stubs reflect no or the wrong amount of tax?
- Why are the credits in your bank different from the name of the umbrella company?
If you cannot answer these questions, a lender may likely decline your application. Evolve has made every measure to assist with these types of issues.
- We utilise broad employment contracts to make it evident that we are your employer.
- Your payslips will include the invoice amount to the agency or end customer, as well as your gross pay and Tax and NIC payments.
- Because we do not employ tax planning or loan programme models, Evolve payslips display the proper level of tax.
- Payments are made directly from Evolve Contract Services, the firm’s name for which you work, as we do not use loan schemes or offshore models.
Being a contractor and obtaining a mortgage isn’t as simple as walking into your local bank and asking for one. When applying, you must consider IR35, tax efficiency, straightforward administration, and regular payments, among other things. Take confidence in knowing that by utilising Evolve’s umbrella solution and mortgage partners, the most appropriate lender and underwriter may be engaged to dispel any fears about the invoicing process.
Key benefits of Evolves mortgage partners:
- Umbrella mortgage specialists
- Free initial appointment
- No obligation quotes
- Access to lenders that provide mortgages for those using umbrella companies