This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.
Our guide to self-employed mortgages at affordable rates runs through everything you need to know about getting a mortgage as a self-employed person and how to negotiate the best possible terms!
Remember, the cheapest self-employed mortgage isn't always the best - you need to look at things like arrangement fees and annual charges, not only the interest rate publicised.
Likewise, as a self-employed applicant, you must apply to a suitable lender who will consider your average income favourably.
For tailored support with finding self-employed mortgage lending, contact the Revolution team at info@revolutionbrokers.co.uk or give us a call on 0330 304 3040.
The Revolution team works with clients every day who have found it challenging to secure a mortgage offer or are unsure which lenders to apply to.
As a self-employed professional, it is crucial to work with an experienced broker who can negotiate beneficial rates and terms for you - we work with:
Suppose you fall into any of these categories. In that case, you might have found it complicated to apply for a mortgage when your income is variable and less easy to demonstrate than an employed applicant with regular monthly payslips.
There isn't a set definition of a self-employed person, so if you have a business of any type, submit self-assessment tax returns, and demonstrate your average income, your mortgage application will fall into this category.
Let's run through how self-employed mortgages work and what to look out for.
In essence, a self-employment mortgage is no different than any other. However, it usually refers to a mortgage that has been adapted to meet the income structure of a self-employed professional.
There is no reason you cannot apply for the same competitive rates and terms as any other applicant - but the trick is in understanding how the calculations work and which lenders to apply to!
The most significant difference is in the income calculations. Lenders will look for proof of your trading income from your accounts. Mainstream lenders will almost always need to see at least two to three years worth of accounts, although more specialist providers can work with self-employed people with shorter trading histories.
Income calculations take your average annual salary and multiply it - usually by four times - to arrive at the maximum amount they can offer to lend.
The application process shouldn't be significantly different - but you will need to look at how much trading history the lender requires and demonstrate your income.
Deposits are usually similar to those required from employed applicants, with the sector average being a minimum 10% deposit.
Some lenders can accept as low as a 5% deposit, depending on your other circumstances.
You might be asked for a higher deposit if any of your circumstances make your application higher risk - for example:
The best way to begin the mortgage application is to seek support from an expert broker who understands the self-employment income structure and can ensure you apply to the right lenders who can offer to lend to you.
There aren't any lenders who exclusively lend to self-employed people. Instead, there are hundreds of options from high street banks to niche providers - the best solution is to work with an independent broker who can recommend the best lender to meet your mortgage requirements.
The exact amount you can borrow depends on your income and how the lender calculates those earnings.
Most will offer up to about 4.5 times your annual income, but others have lower or higher multiples, so it's impossible to give a fixed amount that is the most you can borrow on a self-employed mortgage.
Lenders also have varying criteria, so they might offer a lower-income multiple if you've been self-employed for a shorter period, for example.
If you need to borrow a set amount to purchase your property, give us a call, and we'll advise the suitable lenders for your application.
If you're looking for a mortgage as a self-employed person, the first step is to contact Revolution Brokers.
Our friendly team will arrange a good time to discuss what you're looking for, how much you need to borrow, and any other important factors such as timeframes, employment status, and the property you wish to buy.
After we've established a good idea of your mortgage needs, the Revolution team scours the whole mortgage market to identify the best deals and shortlist the right lenders and best rates available.
As an independent broker, there are no limits on the type of bank or lender we might recommend, and this is wholly dependent on which self-employed mortgage product we think offers the best value for you.
When you've selected a mortgage lender, our team will work with you to proceed, collate all the information, and make sure your application makes it through to final approval.
Many banks and providers offer self-employed mortgages, so you might wish to apply through a familiar lender.
However, it's well worth contacting Revolution if you're concerned about the interest rates available or want to keep your mortgage costs down.
Buying a property can be expensive, so finding a lower interest rate can make a world of difference in your repayment charges and monthly interest.
It's always wise to consult a whole-of-market broker to assess whether the rates you're considering are as competitive as you think - or whether an alternative lender could offer a more affordable option.
You can boost your chances of mortgage approval - and drive down the interest rates offered by mitigating the risk for your lender.
In short, you want to provide as much information as you can to ensure they are in no doubt that you can afford the repayments.
Other ways to reduce the lender's self-employed mortgage risk and improve the affordability of your quotes rates include:
Of course, the best way to have a self-employed mortgage application approved is to work with a specialist mortgage broker such as Revolution.
We negotiate with lenders on your behalf to ensure you secure the borrowing you need at the best rates on the market.
The business finance broker team specialises in self-employed mortgages and works with a vast network of UK lenders who offer favourable terms and flexible mortgage rates.
For more help and information, please look through our other self-employment guides, or give us a call on 0330 304 3040.
Remortgaging your home is a great way to release equity and raise finance for those home improvement jobs you've always wanted to do. Before applying, it's vital to work out how much equity you have in your property and ensure sufficient capacity to borrow the funds required for the renovation you have in mind. In today's article, t..
Do I Qualify for First-Time Buyer Status? Working out whether or not you are a first time buyer may seem obvious - but there are plenty of scenarios where your position isn't clear! Examples might include: New buyers who have inherited a property they rent out. Buy-to-let investors that have never purchased a residential hom..
Most homeowners know that remortgaging means switching a mortgage from an existing lender over to a new deal. However, the process isn't always obvious. If you're on a fixed-rate deal, you'll want to get ahead of the end of the term to avoid being shuffled onto a higher standard variable rate where your interest costs will undoubtedly ..
Finding a great mortgage as a first time buyer can feel like an uphill struggle, with a larger proportion of applicants being turned down than a year ago. Around 20% of first-time mortgage applicants are rejected, usually because of the lender risk associated with their loan. Today, Revolution Brokers explains the highest risk facto..
Investing in a rental property can be an excellent way to get onto the property ladder and earn an income. However, if you haven't owned a residence before, you might find that a mainstream bank will automatically turn you down for a buy to let mortgage. In today's guide, the Revolution Brokers team explains how you can become a ren..
Buying a home for the first time is a massive step - but the deposit is often a stumbling block for first-time buyers. It can take years to save a sufficient amount or be impossible, so there are several ways to approach the problem and get your foot onto the property ladder. From April 2021, the UK government launched the new mortg..
If you refer a friend for a mortgage or any
type of finance you’ll both receive £25
each when their new application
successfully completes.
We are proud
members of the:
The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
Revolution Brokers understands that mortgages can be complex and confusing!
Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.
