Mortgages for Self-Employed – Computer Says No!

Mortgages for Self-Employed individuals can be a tricky business in the present climate. Recently, we have been able to help several individuals and couples struggling to get the right product, or any product at all! If the computer has said ‘No’, get in touch and we’ll do our best to say ‘Yes’! 

Mortgage borrowing potential – Government Grants

Some mortgage providers are currently penalising self-employed customers due to the COVID pandemic and whether they have been able to continue with their business in the last 14 months. I have found, through researching the mortgage market, that if you have taken the government grant over the last year then this, in many cases, is deducted from your 2020/2021 self-employed income, that is then used to calculate your total mortgage borrowing potential. Some mortgage lenders will not include any income for 2020/21 and will expect a minimum deposit of 25% because you are self-employed.

A personal approach to Self-Employed Mortgages

There is some good news though! I have found a small number of mortgage providers that will look at your individual situation at underwriting stage and will take into account your income in the last year and not just judge the fact that you have accepted the government grant that was offered to the self-employed.

They will also take into account what business you have and how you continue to trade in the here and now and moving forward through the coming year, therefore giving a personal, individual approach to their underwriting. They also use the same loan to value deposit requirements regardless of whether you are employed or self employed as long as it fits affordability, so the minimum required could be just a 10% deposit.

If you are self-employed and need some help and advice with a mortgage then please get in touch by calling 0118 916 5480 or email me directly at


Please note  your home may be repossessed if you do not keep up repayments on your mortgage

Author: Rachael Clover | May 13, 2021

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