improving your mortgage chances if you’re self-employed or on furlough
Getting on the property ladder has never been easy, but since the pandemic it has become particularly difficult for aspiring homeowners and home-movers who are self-employed or on furlough. Understandably, lenders are more cautious about approving mortgages for those who don’t have a reliable income. Let’s take a look at how to improve your chance of getting a mortgage…
Self-employed
As self-employed workers tend to earn a different amount each month, most lenders require 3 years of accounts to assess mortgage affordability. To put yourself in the best position possible, ensure your business accounts are up to date and your personal finances organised. With the end of the tax year approaching, consider completing your tax return early this year so that you have the most recent SA302 to hand.
Unfortunately, if your business struggled during the pandemic and you accepted the SEISS grant, this is likely to impact your ability to obtain a mortgage (unless you have other income to support your application). Until lenders relax criteria, continue saving and maintaining a good credit score.
Furlough
Most lenders aren’t currently accepting furlough income on mortgage applications and for those that are, additional measures have been put in place. However, if you’re keen to buy or move home and you CAN provide a return to work date from your employer, we may be able to find a lender who can offer you a deal.
If you’re unsure about when you will be returning to work, talk to your employer. Find out whether or not your job is secure so that you can make arrangements to protect your financial position.
Being whole of market mortgage brokers, we have access to a broad range of mortgage deals. This means we can assess your unique circumstances and find the most suitable mortgage option for you. If you would like to book a discovery chat with an advisor, give us a call on 01633 987070
