Get your accounts in order
Most lenders are happy to give mortgages to self-employed people who have been trading for at least three years and have two years accounts or self-assessment tax returns available. However, if you are unable to get three years accounts you may still be able to get a mortgage.
Speak to an accountant
Lenders prefer borrowers to employ an accountant to prepare self-employed workers’ accounts. Some lenders state the accountant must be certified or chartered – so bear this in mind when choosing one.
Make sure your credit is good
Make sure your credit is good and that you are permissible to be lent to. Determine how much you can afford and put your finances in place to allow you to get the maximum lend.
Understand your SA302
An SA302 or a self-assessment tax return is the equivalent of a P60 for an employed applicant. It provides the yearly income of the applicant. Since 2012, self-employed applicants are being asked for SA302’s by nearly all Mortgage Lenders. SA302’s provide lenders with a strong indicator of the affordability of a mortgage that is to be offered to the applicant or borrower. Speak to your accountant to obtain your SA302’s.
Shop around for the best deal
Make sure you shop around and find the right area and property that you will be happy with. This is an important decision and will probably be the biggest investment you make. You will want to make sure you get the right home, as moving homes due to being unhappy with the property you have chosen can be an expensive process.