Rules to live by – getting a mortgage as a freelancer

One of the disadvantages of being self-employed is that it can be more difficult to get a mortgage, but it is possible.

Here’s one rule to live by if you’re looking to buy

When you apply for a mortgage and you’re employed, the lender will usually confirm your income by asking for payslips and bank statements. When you’re self-employed this becomes trickier. You’ll usually need to provide business accounts, including a copy of your self-assessment tax return forms.

Lenders often ask for between two and three years of accounts, so you may not be able to get a mortgage if you’ve only just become self-employed.

Usually, the lender will take an average of your income over the last two or three years to calculate how much they’re willing to lend you. They may also ask to see other documents – business plans, for example – to check that they’re confident you’ll be able to keep up with the mortgage repayments.

Make sure that you keep at least five years in clear accounts documentation for instances such as this!