Self-employed mortgage advice with Keith Street | Just Mortgage Brokers
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Self-employed mortgage advice with Keith Street | Just Mortgage Brokers

Clock  4 minute read

Carl Shave Carl Shave | June 26, 2019

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Looking for self-employed mortgage advice?

Did you know 1 million (20 percent) of self-employed people think they would be refused a mortgage if they applied for one simply because they are self-employed? Some even reconsider their employment situation because of the uncertainty of securing a mortgage.*

Here to share self-employed mortgage advice, we talk to Keith Street, the Chief Commercial Officer at The Mortgage Lender.

Keith Street has been involved in retail financial services for 30 years, covering all aspects of the industry. For the past 20 years he has worked mainly in the mortgage market and held senior positions at lenders such as HBOS, Citibank and Nationwide. Keith was a lifetime achievement award winner in 2016 from Mortgage Finance Gazette.

From self-employed mortgage tips, to common problems and mortgage myths, take a read of our interview with Keith Street to discover some of the most common questions we get asked about self-employed mortgages

How difficult is it to get a mortgage if you’re self-employed?
The perception amongst many self-employed people is that they would be refused a mortgage if they applied for one simply because they are self-employed, however, the reality is somewhat different.  There are a significant number of mortgage products available from many lenders that are designed for the self-employed.

How can I improve my chances of getting a mortgage when self-employed?
All lending decisions for residential mortgages today are based on two factors, credit worthiness and ability to pay or affordability. Provided the applicant can satisfy to the lender that they have a good credit history and sufficient income to afford the mortgage then they stand a reasonable chance of obtaining the loan.

What tips would you give to someone who is self-employed and applying for a mortgage?
I would give one crucial piece of advice. Find a good broker who has a wide experience of dealing with self -employed clients.

Did you know, here at Just Mortgage Brokers our expertise can help you to find the right self-employed mortgage on the market to meet your specific needs and circumstances?  Talk to one of our self-employed mortgage advisors today.

How will my earnings be calculated?
Different lenders have different ways of assessing income. Some will take last year’s profit, some will take an average of the last 3 years. Others may be looking at drawings and profits, it all depends on the individual lender’s criteria. Therefore, you need the assistance of a good mortgage broker.

Have you tried our self-employed mortgage calculator? Just fill out a few details and calculate your chances of getting a self-employed mortgage. If you’d prefer to get in touch with one of our self-employed mortgage advisors, click here

How many years proof of accounts do I need to show?
See above as it depends on the lender’s criteria.

In the past year, I’ve become self-employed; I’ve been employed for 10 years. How will this affect my chances when re-mortgaging?
Not necessarily, many specialist lenders will now allow business with only 1 year’s trading to qualify for a mortgage. It would help, however, if the nature of the new self-employment was aligned to the individual’s past 10 years of employed status. This is not a hard rule however.

What’s the most common problems people have with self-employed mortgages?
The reasons for non-qualification typically fall into insufficient income to afford the loan or a poor credit profile. These, however, are the 2 main factors affecting mortgages for people who are not also self-employed.

I’m self-employed with only two major clients will lenders prefer to see multiple clients?
I cannot see this being a problem. Seldom do lenders consider the details of a specific company and focus on the financial strengths.

Will you often need a higher deposit if you’re self-employed? If I had a higher deposit, would this help improve my chances?
Higher deposits can help in terms of a lender’s view of the risks of a loan regardless of the applicant’s employment status. It’s not usual, however, for loans to self -employed applicants to require larger deposits.

What’s the biggest myth you’ve heard regarding self-employed mortgages?
The biggest myth is that people who are self-employed are not able to use the mortgage market and are discriminated against. There are lenders and products out there just waiting to be utilised.

You can keep up to date with Keith Street who always shares his expertise and insights via his LinkedIn here.

If you’re looking for self-employed mortgage advice, our self-employment mortgage advisors are at hand to help! Contact us for free advice.

* Research carried out by OnePoll

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