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t : 02895 575010
e : info@njwfinancial.co.uk
While self-employment offers numerous benefits in one's life, it can pose challenges when purchasing a property, impacting thousands of prospective homebuyers annually who seek mortgages for the self-employed.
Contrary to common belief, being self-employed does not reduce your chances of mortgage approval compared to salaried applicants – the key lies in being slightly more organised in managing your finances and supplying extra evidence of income and affordability. Ultimately, the mortgage application process is neither more arduous nor complex for the self-employed, particularly with the assistance of a well-informed mortgage adviser guiding you through the journey.
Essentially, the notion that obtaining a mortgage as a self-employed individual is difficult is simply a misconception. We are here to support and guide you through the process.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
A self-employed mortgage is a home loan for individuals who are self-employed or have an irregular income stream. These mortgages are just the same as 'regular' mortgages, they just assessed differently. They require different and additional documentation to verify income and stability.
Getting approved for a self-employed mortgage doesn't have to be challenging. Here are some tips to increase your chances of approval:
As mentioned earlier, a good credit score is crucial for getting approved for a self-employed mortgage. Pay your bills on time, keep your credit utilisation low, and avoid applying for new credit before applying for a mortgage.
Keeping detailed financial records can help you prove your income and increase your chances of approval. Keep track of your income, expenses, and any tax deductions you may qualify for.
Saving for a larger deposit can help you qualify for a self-employed mortgage. A larger down payment shows the lender that you have a stake in the property and are committed to repaying the loan.
Working with a mortgage broker who specialises in self-employed mortgages can help you navigate the process and find the best loan options for you.
The key to any successful mortgage application is affordability. The following is a guide as to what income proof documentation is required:
Post-pandemic, some lenders are also asking to see 6 months' business bank statements to ensure that your business is performing well and therefore your income is sustainable.
Frequently Asked Questions
You will be classed as self-employed if you own over 17.5% of a business. So, if you own your own small business as a sole trader, or even if in partnership with one or two others, you’re basically going to be classed as self-employed. It’s also worth noting that, for the purposes of a mortgage application, those who are in a partnership are treated the same as those who are sole traders.
Organisation is key and, if you’re considering buying a house in the near future, it’s never too early to start looking for a better way of organising your accounts and pre-empting the questions that lenders might ask about your income by gathering all your bank, accountants and HMRC statements together for the lender to see
Self employed mortgages are typically more difficult to obtain because the lender may have difficulty establishing how much you earn, and therefore the risk of you not being able to pay back what you borrow. Generally, if you have been self employed for longer than 3 years, you would be considered by most lenders in the same way as an employed applicant. If you’ve only been trading for 1 or 2 years then it is often much more difficult and lenders may deem you to be more of a risk however, as we’ve already discussed that is becoming less the case these days at lenders become more flexible.
The deposit levels are no different to those who are employed. Once we know what deposit you have available, we’ll advise upon the most appropriate lender for your circumstances.
We’d love to hear from you. Call 02895 575010 or 0141 291 5044 or send us a message using the form below and we’ll tend to your enquiry right away.
NJW Financial Ltd is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority.
We are committed to providing a professional service to all our customers.
If you are unhappy then we want to hear about it so we can try to put things right. With this in mind, we have the following complaints procedure in place.
You can make a complaint by any reasonable means including telephone, letter, or email.
Our contact information:
• Write to: Nick Ward
• Telephone: 02895 575010
• Email: info@njwfinancial.co.uk
If you prefer, you can also refer your complaint to PRIMIS directly using the following contact details:
• Write to – PRIMIS Mortgage Network, Customer Resolution Team, Ground Floor, Birmingham Business Park, B37 7YT.
• Telephone: 0121 767 1139
• Email: complaints.solihull@primis.co.uk
You can also complain via their website:
• https://www.primis.co.uk/privacy-notices/complaints/
The same section of the website contains more information about PRIMIS’ role in complaints handling and about how Appointed Representative relationships work.
How we will handle your complaints
Simplified Complaints
We will use this process if:
• your complaint is about a simple matter - that we can look into and solve quickly and easily; and
• you direct it to us (rather than directly to PRIMIS Mortgage Network) in the first instance.
We will investigate your complaint and aim to resolve it within three business days following the date of receipt. If you are happy to accept our proposed resolution, we will send you written confirmation of our investigation.
If you cannot confirm acceptance by the end of the third working day (for example – because you are not happy with our proposed response or if you are not available to discuss it with us) then the case will be referred to PRIMIS Mortgage Network. It will then be handled in line with the Formal Complaint process outlined below.
If your complaint is more complex or is unlikely to be resolved quickly then we will usually refer it to PRIMIS straight away
Formal Complaints
The formal complaints process will be used where:
• we can’t resolve your complaint to your satisfaction within 3 working days: or
• your complaint is likely to involve more complex assessment or investigations; or
• you send your complaint directly to PRIMIS Mortgage Network rather than to us in the first instance; or
• you ask us to deal with your complaint in this way rather than via a simplified process.
Upon receipt PRIMIS will acknowledge your complaint promptly and will investigate it fairly and impartially. They will write to you within 8 weeks to confirm the outcome of their investigation.
In the unlikely event that their investigation is not complete within eight weeks of receipt of your complaint they will write to you to explain why and let you know when you can expect to hear from them. They will also provide details of how to contact the Financial Ombudsman Service if you are not satisfied with progress.
The Financial Ombudsman Service
If, following PRIMIS’ investigation you are still not happy with the outcome you have a statutory right to refer your complaint to the Financial Ombudsman Service.
It is a service free of charge to consumers and you may refer the matter to the Financial Ombudsman Service (FOS) within six months from the date that you received a final response to your complaint.
You can contact the service using the following details:
Telephone 0800 023 4567
Email: complaint.info@financial-ombudsman.org.uk
You can also visit their website and refer complaints to them online by visiting.
https://www.financial-ombudsman.org.uk/
Let us know if you need any extra help or support.
We are committed to providing a complaints service that is accessible to all our customers.
If you will have any difficulties with any elements of the process that is outlined above, or if there are circumstances that might mean we need to change the way in which we handle your complaint then please let us know when you tell us about your complaint.
NJW Financial Ltd is an Appointed Representative of PRIMIS Mortgage Network, a trading name of First Complete Ltd. First Complete Ltd is authorised and regulated by the Financial Conduct Authority (FCA). NJW Financial Ltd is a company registered in Northern Ireland, company number NI688242, with its registered office at 17 Carnmoney Road, Newtownabbey, Northern Ireland, BT36 6HL
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Any other product or service offered by NJW Financial Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority.
Most Buy to Let mortgages are not regulated by the Financial Conduct Authority. Wills are not regulated by the Financial Conduct Authority and may have limited consumer protection.
The guidance and/or advice contained within this website is subject to UK regulatory regime and therefore restricted to consumers based in the UK.