Securing a mortgage can seem challenging to many, and for self-employed individuals, the hurdles often seem higher. Many self-employed workers think that the effort of proving financial stability is both time consuming and complicated, however, there are steps that they can take to improve their chances of securing a mortgage.

To show your financial readiness for home ownership, it is generally advised to have evidence of self-employed income for 2 years before you apply for a mortgage. This ensures a thorough overview of your situation and your commitment to financial responsibilities. During this time, it is key to keep an accurate record of your income, expenses and taxes which will provide lenders a detailed history where they can assess your reliability as a potential borrower.

To help prepare for securing a mortgage, you should consider the following:

  • Maintain accurate financial records

Keep detailed records for at least 2 years, this helps to demonstrate financial stability to lenders

  • Review your credit report

Make sure that the information is accurate and up to date

  • Maintain a low credit balance

Don’t exceed any credit limits or overdrafts

  • Pay off all existing debts

Debts should be repaid and on time

  • Ensure you are on the electoral roll

This helps mortgage lenders to verify your identity

  • Save for a larger down payment

A larger down payment not only reduces the loan amount but also shows financial responsibility to lenders

We have a team of experienced mortgage advisors who can provide more information tailored to your financial situation. Find out more here.

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