At Hawke Financial Services, we specialise in offering effective self-employment and contractor mortgage solutions that will give lenders the confidence to invest in you. A self-employed mortgage is an invaluable solution that allows clients without the security of registered employment to secure the maximum borrowed mortgage value to acquire their dream property.

To have your self-employment mortgage approved, you’ll need to provide documentation for a range of financial factors, including:

– Tax calculations: a print-out from HMRC, or your accountant’s filings.

– Financial accounts: this will need to cover the recent complete tax year and, in cases where retained profit and dividends are to be taken into account, the previous year as well. Be prepared to answer any questions on your accounts, including dips in profit.

– HMRC tax year overview

Once you’ve spoke to one of our mortgage brokers, we can quickly provide you with an Agreement in Principle (AiP), confirming that you could borrow the amount you need.

There are several advantages to securing a self-employment mortgage for your property. This includes: approval for a mortgage that you may otherwise struggle to achieve and higher borrowing amounts – if your mortgage broker takes into account the retained profits of your business, you could borrow much higher amounts than typically achieved from a salary.

When applying for a mortgage, most lenders will class you as ‘self-employed’ if you have around 20% or over share of the business that provides your main income. You may also not have payslips to prove your income – in these cases a self-employment or contractor mortgage will be the best way to get the confidence of mortgage brokers to secure your financial solution.

You will need to be able to prove your income to a lender to qualify for a self-employment mortgage and in some cases this will require up to two years of accounts. Without this you will not be eligible for a self-employed mortgage. Many mortgage lenders will insist that these accounts have been kept by chartered accountants, to increase their credibility. Not all mortgage lenders take into account retained profits, so it’s important to work with your mortgage broker to find a lender who does if this is an avenue you’re relying on.