Self-Employed? Follow These Tips When Applying For A Mortgage

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September 08, 2017

Those doing the standard 9-5 often observe freelancers with a jealous eye. Being able to work when you want, where you want, for who you want sounds like a dream to anyone stuck in a conventional job. But as a freelancer yourself, you know this lifestyle isn’t all smiles and candyfloss. In fact, when it comes to getting a mortgage, freelancers often feel as though they chose the wrong career path.

Lenders regard self-employed workers to be a greater risk than most, as they can never be sure where the next paycheque is coming from. As a result, securing a mortgage in a freelance capacity is notoriously difficult – but there are actions you can take to make things a little easier. Here’s how to maximise your chance of a successful application.

Take care of your credit rating

Your credit rating can take damaging hits simply because you aren’t dedicating enough time to taking care of it. Remember, a healthy score goes a long way to swaying lenders in the right direction. Close your unused accounts, ensure you’re on the electoral roll, and do your best to avoid late repayments at every opportunity.

If you have any other debts (overdrafts, outstanding bills) get them paid off as soon as possible by putting some money aside each month. The less you owe, the better the odds of your mortgage application being looked at more favourably.

Be a record-keeper

Those who have been working in a freelance/contract capacity for a longer period of time will often have a much better chance of getting a mortgage. This is, in part, because they have a proven record of employment behind of them.

Proof of regular employment is a big plus for lenders, so be sure to keep as many records as you possibly can relating to any jobs you might have done – no matter how large or small. Gather all your payslips, bank statements, invoices and self-assessment copies too – you’re going to need them when it comes to crunch time.

Recruit a specialist accountant ASAP

A freelance/contract accountant looks after your finances so they appear neat and tidy in time for your mortgage application. Lenders appreciate orderly accounts, and a self-employed accountant will be able to handle your taxes, self-assessments and incoming/outgoings to ensure everything remains above board.

A long history of well-organised finances is what lenders like to see. The sooner you recruit a specialist accountant, the sooner your accounts will appear to look ship, shape and shiny.

Here at Bright Ideas, we help freelancers and contractors get their financial affairs in order – giving you the best possible chance of sliding through the mortgage process unscathed. Give our friendly team a call on 0161 451 3941 or send a message to for more information on how we can help you get the funding you need to fund a home.



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