How to get a mortgage as a Sole Trader.
Sole traders can often fall foul when applying for a mortgage, as their income can be irregular. High street lenders primarily use affordability criteria that is not conducive to granting mortgages to people who work for themselves. When you work for yourself, erratic paying customers are an occupational hazard, but that doesn’t mean that you should have to miss out on your ambitions of becoming a homeowner.
A holistic view
The mortgage advisors we work with are carefully selected for their ability to view a person’s entire financial picture holistically and find the most suitable products for their needs. It also helps that these specialist brokers also have access to financial products that are completely geared towards providing an option for people who would otherwise struggle.
Affordability is key to success when applying and the more evidence you have to prove that you have a steady income over an extended period, even if it is subject to the ebb and flow that often occurs with sole trader cash flow. The minimum you’ll typically need 12 months of self assesment to back up your application.
The aforementioned brokers also consider sole trader applicants who have had credit issues in the past, whether it be bankruptcy, an Individual Voluntary Arrangement (IVA) or even a Debt Management Plan (DMP). This also applies to self employed contractors, shareholders in limited companies, those in partnerships, Directors or even those in Limited Liability Partnership (LLP) arrangements.
Our relationship with the kind of brokers that understand that people should be judged on circumstances and not a credit profile, means that we are well placed to help you. If it’s affordable to you and you can prove it, there’s every chance that they’ll be able to find you something..
So don’t assume that you aren’t going to succeed until you’ve had a chat with one of our recommended brokers. They’re ready, waiting and eager to help.