Common Queries on Self Employment Mortgage

On mortgages for self-employed, people have countless questions, as obtaining funds make them go through the varied stages. This fact creates many doubts and questions in the minds of the applicants, and they need reciprocation with correct answers. If you are also among them, a quick look at some most of the common queries can help you to get closer to your approval chances.   

Why is it so difficult to get a mortgage for self-employed people?

It is always challenging to make a precise assessment of the income of a self-employed applicant. Due to the bumpy performance of the business, the monthly income keeps going up and down.

If in a month you have earned a good profit maybe in the next two months loss may happen. The monthly earnings of self-employed people do not come under the category of standard salary like traditional employees. It creates confusion for the lender, and it hesitates to approve the loan.

However, if you maintain the minimum amount as the monthly income things become more comfortable.

Why do lenders need tax return information?

Mortgage providers cannot skip asking for your tax return details. It is because that information helps them get the required insight into your income status.

Lenders need to know how much you deduct from the tax because; if you are not paying correctly, then the mortgage company will never allow you to present that part of the money as income.

How long do I need to be self-employed to borrow funds?

At least 2 to 3 years of experience is necessary to obtain funds. Many times, self-employed people ask if they can get a mortgage with one year of accounts or not? The answer is, they can apply for a mortgage but getting a yes from the lender with only one-year financial accounts is not easy. There may be an intense struggle on the front of the approval.

Finance companies need to see stability in your income as a self-employed applicant, and for that 1-year record doesn't look sufficient.

How can I find a suitable lender?

Getting a mortgage when self-employed is severe; you should work on the methods that reduce the chances of wrong selection of the lender.

Ignorance of the mortgage market can make you apply to a lender that is not suitable according to your financial conditions. Hiring a broker can be a better way for getting a mortgage when self-employed such as, as it knows about all the deals for self-employed available in the market.

Find a fee-free broker as you can save precious pennies and can use them to make your budget bigger.

What if I get a rejection?

Well, If unfortunately, you get a rejection on your mortgage request, it is advisable to not to apply for the next mortgage immediately. If possible, keep a gap of at least 6 months.

During the period, try to work on the actual cause of the rejection. Whether it is the weakness of credit score, income stability or tax issues, it is necessary to be more potent as an applicant when you apply next time.


It can be a bit complicated to get a mortgage with the tag of self-employment, but yes, it is not impossible. After all, the finance industry has grown up with progressive methods of lending. The next-generation FinTech approach emphasises the logic that facilitates flexibility for the borrowers.

Make the best use of the available services and financial tools like calculators, apply to the most suitable lender, and you will see that getting a mortgage when self-employed is not complicated.

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