Self-Employed Mortgages

PFG Mortgages specialises in self-employed mortgages

 We are 100% independent and can advise on products
across the whole mortgage market

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With you from application to completion and beyond

More than just Mortgages we offer advice on Insurance, Wills, & Investments

Please get in touch today for a no-obligation conversation about how we can help
find you the best mortgage for your needs. 

Will a lender classify you as self-employed?

While the exact definition varies by mortgage lender, in very simple terms you’ll generally be considered ‘self-employed’ if you own at least 20-25% of a business whose proceeds make up your primary income.

In reality, though, there are several ways of working for yourself. This could include (but isn’t limited to) the following business models:

• Sole trader: This is where you own and run a business by yourself (responsibility is solely yours). Sole traders can have employees too, but the sole trader remains in charge of the business.

• Contractor: Typically, this is where you provide services or skills to another business for a set or contracted period – be it in hours or project duration. A contractor could be a sole trader or run their own limited company.

• Director/partner of a limited company: This is where responsibility for a business is shared between directors/partners/shareholders (it’s not solely one person’s responsibility).

In general terms, you’ll likely be considered self-employed if you’re responsible for the success or failure of a business – be that solely or jointly.

• Freelancers
If you’re a freelancer you’ll probably be considered self-employed, falling under the sole trader or contractor categories (performing work for set periods of time or completing individual projects).

• Agency & ‘umbrella’ workers
In most cases, agency workers – and agency workers who are paid via an ‘umbrella’ company – are unlikely to be considered self-employed. However, agency and umbrella workers can experience similar difficulties to the self-employed when trying to get a mortgage, such as providing a regular income.

If you’re an agency or umbrella worker, it’s best to speak to a mortgage broker and they can advise you accordingly.

What are Self-Employed Mortgages?

Self-employed mortgages are not a one-size-fits-all proposition. There are various options available, each with its own set of requirements and benefits. Here’s an overview of the most common types:

→ Self-certification mortgages

→ Accountants’ mortgages

→ Multiple income stream mortgages

Qualifying for a Self-Employed Mortgage

While the specific requirements for self-employed mortgages vary from lender to lender, there are some general eligibility criteria:

Applicants must have been self-employed for a minimum period of one year.

Your business must be profitable and have a proven track record of generating income.

Strong Credit History, use our link to check my file

Must be able to demonstrate sufficient funds to cover the deposit.

Maximizing Your Chances of Approval

Firstly speak to an independent mortgage adviser who specialises in self-employed mortgages like the team here at PFG Mortgages, to help aid your adviser you can also:

Gather all relevant financial documents, including business accounts, tax returns, and accountant’s reports.

Optimize your income

Maintain a good credit score, use our recommended check my file service and provide this to your PFG Adviser

Additional Tips for Self-Employed Mortgage Applicants

Consider alternative credit scoring mechanisms

Demonstrate business growth

Showcase your financial management skills

→ Be patient and persistent

Remember, there’s no one-size-fits-all approach to securing a self-employed mortgage. The key is to carefully evaluate your options, work with experienced professionals, and present your financial situation in the best possible light.

A Guide to Self-Employed Mortgages - PFG Mortgages

Download our Self-Employed Mortgage Guide

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