Self-employed individuals often face extra hurdles when applying for a mortgage. Here’s how to improve your chances, with expert support from Purple Patch.
1. Prepare Your Financial Documents
- Provide at least 2-3 years of tax returns or SA302 forms.
- Have detailed accounts prepared by a certified accountant.
2. Maintain a Good Credit Score
- Pay bills on time and avoid high credit utilization.
- Check for errors on your credit report and fix them promptly.
3. Increase Your Deposit
A larger deposit reduces the lender’s risk and increases your chances of approval. Aim for 15-
20% if possible.
4. Work with Specialist Lenders
Some lenders specialize in mortgages for self-employed applicants. A broker can help you identify these options. Purple Patch has extensive experience working with self-employed clients and can connect you with the right lenders.
5. Avoid Frequent Income Fluctuations
Lenders prefer consistent income. If possible, show a steady or upward trend in your earnings over recent years.
By following these steps and working closely with Purple Patch, you can navigate the mortgage process with confidence, even as a self-employed applicant.