Finding a mortgage when you are self employed can be tough these days. Follow these tips on how to best find a mortgage when you work for yourself.

In previous years, lenders would need you to declare your income without necessarily providing stable proof of future earnings when it came to sorting out a mortgage when you are self-employed.

The vast majority of lenders are now likely to ask for proof of future earnings through a variety of different methods.

As a first time applicant you are likely to need at least 2 years worth of tax statements or company accounts that are signed off by a qualified accountant. In addition to this, lenders may also want to see sufficient evidence that you are likely to earn similar sums in the future.

This could mean that they look into factors such as the sustainability or popularity of your business, as well as clients which you have lined up for the future and any references they deem necessary.

Securing a mortgage is now undoubtedly more complicated and potentially time consuming for those who are self employed compared to those who are in regular employment.

However, provided you can verify your earnings and potential for stable future income to the lenders’ satisfaction, you should have as much chance of securing a mortgage as anyone else.

A useful method of preparation on your part before you meet with any number of potential lenders may be to ask yourself what exactly, in addition to proof of stable future earnings, is a lender likely to be looking for from you.

Self Employed Mortgage Payment Protection Insurance

If you are self-employed and have an existing mortgage you may be paying Mortgage Payment Protection Insurance (MPPI). If you are then you are wasting money as the insurance is designed to protect you against losing your job, which if you work for yourself is unlikely to happen. If you have MPPI and are self employed then you should be able to claim compensation for Mortgage Payment Protection Insurance.