Data released by the Office for National Statistics last month revealed the number of self-employed workers in the UK has surged to a new record high. There are now a massive 4.9 million workers across the nation who are their own boss.
Being self-employed can bring with it many benefits. You can work around your lifestyle, you’ll have greater flexibility and if you’re successful it can become a very lucrative venture. So, there’s no wonder why so many of us are becoming our own bosses. But, what should you consider?
Lenders don’t have a separate category for self-employed mortgages. You are able to access the same products and the same rates as your employed counterparts even if you’re your own boss. However, your earnings may be viewed as more complex to some lenders and you must be able to prove them to the lender.
Ultimately, when applying for a mortgage, you will be assessed on how much you are earning, how likely is it you will sustain that level of earnings, how you take your earnings, how long you’ve been trading for, your accounts history and a number of other things. Then, once all the relevant documents have been submitted, the lender will assess the application and make a judgement based on their lending criteria – so you can appreciate how complex the application process can be on your own.
A good mortgage broker will be able to help answer all of your questions, will be able to provide invaluable advice and be able to move the application forward as quickly and as smoothly as possible based on your current and future circumstances. They will be able to point you in the direction of a lender that is not only willing to lend but also those most likely to provide you with the best deal.
If you’re thinking of becoming self-employed or already are and want to talk through your options, contact one of us today.