Securing a mortgage is never easy – and even less so if you’ve recently switched from full-time employment to contracting, freelancing or self-employment. So, working with our recommended Mortgage Broker, CMME, we have developed this simple guide which will help to make it as seamless as possible.

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Mortgage guide for the self-employed

We outline some important aspects to remember before applying for a mortgage, as well as what to expect during the process:

Keep a copy of your contract

Make sure you have a copy of your signed contract to hand which is totally up to date.

This needs to clearly state the length of your contract, and your current contract rate.

You’ll also need some ID, such as your passport and your driving licence, plus bank statements – both business and personal - and any other information, like utility bills for example, that could be relevant to your mortgage application.

Contractor mortgages made simple: choosing the right contractor mortgage specialist

Assuming you choose CMME, they will help you to select a lender suited to your individual circumstances, as they have negotiated specialist mortgage underwriting terms for contractors with a number of large High Street lenders.

This enables them to arrange a mortgage based on the contract you have, rather than on the number of years you have been working as a contractor. This will help to process your application quickly and without hassle.

Get a lender who understands your circumstances

The fact that CMME is managing your application means that the lender will treat you seriously and will understand that independent professionals are not higher risk.

As opposed to trying to convince inexperienced bank employees, who only really understand the world of employment, that your income is valid for mortgage funding.

Agreement in principle

Once you have chosen a lender, CMME will help you to secure an ‘agreement in principle’ from them, which will state exactly how much the lender is happy to lend you.

It’s really useful to know this before you start house hunting so that you know what you can afford to look at, or how much discount you need to negotiate!