WHAT COUNTS AS SELF-EMPLOYED?
Lenders will view you as self-employed if you own more than 20% to 25% of a business, from which you earn your main income. Lenders are pretty flexible when it comes to the sector in which you work. Almost all occupations are acceptable providing that the business is viable, and the income is sustainable. You could be a builder, a plumber or any other tradesmen, a musician or an actor, you may work in the financial sector or have an online business, to name just some examples.
When you set up your own business you have a choice of three main business structures to choose from: sole trader, partnership or a limited company. Below we explain in detail the evidence of income you have to provide for each type of company.
What about contractors and freelancers?
These are just different ways of being self-employed. Being self-employed is an umbrella term for anyone who pays themselves through their own work and both freelancers and contractors fall in this category. The main difference is the way they work and the industries they are associated with but, in terms or income, paying tax or mortgage eligibility, same rules apply. Some freelancers and contractors are registered as sole traders while others chose to work through their own limited company.
WHAT MORTGAGES ARE AVAILABLE FOR THE SELF-EMPLOYED?
There is actually no such a thing as “self-employed mortgages”. Any mortgage for self-employed applicants will almost always be the same as for employed applicants. It just depends on which lender will accept you so as long as you’re eligible and you’re able to prove your income, you should have the same range available as anyone.
Our mortgage brokers have a wealth of experience in dealing with self-employed income and they can discuss your mortgage options with you on 01242 697821.
Contact Us About Self-Employed Mortgages