Infographic: Mortgage solutions for the self-employed

Photo of a house resting on a calculator
By Alex Burden, Student Blog, and Philip McNeill, Head of Taxation

5 June 2017

Getting a mortgage as a self-employed worker has been notoriously difficult in the past, but as the sector grows, what does this mean for home ownership? Our handy infographic explains what you need to know and do. 

Around 15.0% of all people in work in the UK are now self-employed, translating to 4.78 million people

The gig economy is now the fastest-growing in the UK, so if you plan to join this exciting world, what will you need for future home ownership?

One of the first things you might need is an SA302 form from HMRC, and Gov.uk has produced a fantastic list of mortgage providers or lenders who should accept the form, or commercial software alternatives, as evidence.

If you have a limited company, loan to value ratio will be calculated on your salary and dividends or share of net profit, while lenders will usually look at shares of net profit in partnerships to calculate borrowing amount.

Information and advice before you apply for a mortgage:

  • Some lenders add your salary to declared dividend for annual earnings, and some lenders use net profit
  • It's good to bump up how much tax you pay in the years prior to application
  • Look to dedicated specialist lenders or building societies (regional-based mortgages have a better overview of your specific job market)

[Tap to enlarge infographic]

Topics

  • CA Student blog

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