How do I buy a house when self employed?

Chris Andreou

How do I buy a house when self employed? Guide

If you’re self-employed, the process for obtaining a mortgage can be more complicated—but it doesn’t mean that you should rule out your chances.

Here are some tips to help improve your chances of obtaining a mortgage and buying a home:

  • Think twice about switching your business structure prior to your application: If you're thinking about going from being a sole trader to a limited company director, it's best to delay your application until you have one year's worth of books. If you apply before that, you may be offered a smaller mortgage, or have to choose from a limited selection of lenders.
  • Avoid taking extended breaks prior to your mortgage application: Lenders want to see stability in your work flow and income, so it may be best to avoid taking extended breaks longer than six to eight weeks a year or two before you make your mortgage application.  
  • Consider mortgages that allow for over payments: As a self-employed individual, you'll likely experience peak periods that bring along a greater influx of funds. It can be worth looking into mortgages that allow for over payments, since you'll be able to make over payments (above your monthly repayments) when you can afford to, and as such pay off your mortgage more quickly.

For more tips and information, refer to our guide on getting a mortgage when self-employed.

Get 50% off for the first 3 months.

From £29 a month,you get a dedicated accountant, online accounting software and all your filings managed.

Get Started
No items found.

Read More Guides below:

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Guide
Virtual Office

What is a Virtual Office: 7 Things to Know Before Buying

Read more
Guide
Virtual Office

Mail Forwarding Service UK

Read more
Guide
Virtual Office

11 reasons why your online company needs a (Virtual) Office

Read more
View more guides, calculators and downloads here:

How do I buy a house when self employed?

Chris Andreou

March 19, 2022

How do I buy a house when self employed? Guide
No items found.
Download Now ↓
Business Resources

If you’re self-employed, the process for obtaining a mortgage can be more complicated—but it doesn’t mean that you should rule out your chances.

Here are some tips to help improve your chances of obtaining a mortgage and buying a home:

  • Think twice about switching your business structure prior to your application: If you're thinking about going from being a sole trader to a limited company director, it's best to delay your application until you have one year's worth of books. If you apply before that, you may be offered a smaller mortgage, or have to choose from a limited selection of lenders.
  • Avoid taking extended breaks prior to your mortgage application: Lenders want to see stability in your work flow and income, so it may be best to avoid taking extended breaks longer than six to eight weeks a year or two before you make your mortgage application.  
  • Consider mortgages that allow for over payments: As a self-employed individual, you'll likely experience peak periods that bring along a greater influx of funds. It can be worth looking into mortgages that allow for over payments, since you'll be able to make over payments (above your monthly repayments) when you can afford to, and as such pay off your mortgage more quickly.

For more tips and information, refer to our guide on getting a mortgage when self-employed.

Download our Ultimate Expenses Guide

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
No items found.
No items found.

Download our Ultimate Expenses Guide

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
No items found.
No items found.

What's Inside:

No items found.

Get Free Advice from an Accountant

Book a free 30 minute call with an accountant. We'll help walk through setting up your business, switching accountant or any of your tax queries. All our fixed price accounting packages come with a 50% off for 3 months.

Read More Guides below:

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
View more guides, calculators and downloads here:
No items found.