Getting a mortgage is a lot more straightforward when you are employed than it is when you are self-employed or a business owner, but if you know what you are doing, it doesn’t have to be a huge headache.
Below are some top tips for securing a mortgage when you run your own businesses which you may find useful if you are thinking of buying a property in the near future:
1. Ensure your accounts are in order
If you are looking to get a mortgage as a businesswoman, then you need to make sure that your accounts are as up-to-date and in order as possible. Any mortgage broker will tell you that your accounts will be scrutinized before a decision is made and if there is anything misusing or anything that does not look right, you will really struggle to get a loan, which is why having your accountant look over them before applying is an excellent first step.
2. Build your credit score
Your credit score will also be a major factor in whether you are approved for a mortgage or not, so in the months leading up to applying, it is a really good idea to get your credit score up as high as you possibly can. You can do this by making regular payments on time, getting on the electoral roll if you aren’t already, and making sure you do not miss any important bills.
3. Save for a bigger deposit
Although it is possible to get a mortgage with a five percent deposit when you are a business owner, it is often easier to do so, and get a better deal if you have a larger deposit. Anything between 10 and 25 percent is good but the more you can offer upfront, the easier time you will have of persuading someone to lend to you, but again if your accounts are healthy and you have a good credit score, things should be easier on this front too.
4. Use a specialist lender
It is possible to get a mortgage with a highs street lender, but if you are a business owner, you may well have an easier time of it if you go with a specialist lender who is used to dealing with the delf-emp[loyed because they will know exactly what they are doing, how to assess you and they will be more accommodating of your specific needs. They are also more likely to offer you good rates when compared with a standard mortgage lender, so if you want to save money, this really is a smart move.
5. Keep going
It's not unusual to get your application turned down if you are not a standard client, so if you don’t succeed, do keep trying. You will eventually find the right lender who can work with you and it will be so worth it when you can start climbing the property ladder.
Hopefully, this will help you along on your journey to becoming a homeowner. We at WFM wish you the best of luck.
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