Mortgage Tips for Self-Employed Borrowers | NatWest.

Are you self-employed and in the market for a mortgage? Securing a mortgage can be challenging if you’re self-employed. We understand and can help. NatWest is here to assist you and give you helpful tips to increase your approval chances. . In this blog post, we’ll guide you through the steps to make your mortgage journey smoother.

When am I considered self-employed?

To begin, let’s clarify when you’re classified as self-employed. If you own a business that makes most of your income and has a 20% stake, you’re self-employed.

Let’s explore the steps to increase your chances of getting a mortgage.

1. Provide two years of income evidence.

To apply for a NatWest mortgage, show proof of your self-employed income. You need certified accounts, the SA302 form, and a tax year overview for at least two years. Submit these documents for a better loan approval rate.

2. Save a generous deposit.

One important factor in securing a mortgage is having a substantial deposit. The larger your deposit, the more options you’ll have. A lower LTV mortgage offers better rates, lower monthly payments, and faster repayment. So, start saving and aim for a generous deposit to maximize your choices.

3. Maintain a good credit score.

Your credit score plays a crucial role in mortgage applications. A good credit score shows lenders you’re reliable, boosting your chances of approval. To maintain a good credit score, pay bills on time, avoid excessive debt, and use credit wisely.

4. Start with an Agreement in Principle.

To know how much you can borrow, start with an Agreement in Principle (AIP). NatWest offers a personalized AIP that takes less than 10 minutes to complete. Use it to guide your property search and be confident in affordable options. The best part is an AIP does not impact your credit score.

Helpful answers to common self-employed mortgage questions:

– How long do you need to be self-employed for a mortgage? Typically, you need to be self-employed for two years to have a steady income for a mortgage. 

– How do you prove your income for a mortgage when self-employed? Proof of income: 2+ years’ certified accounts, SA302 form, and HMRC tax overview.

– Does being self-employed affect your chances of getting a mortgage? If self-employed for 2+ years, showing proof of income enables getting a mortgage.

– What documents are needed to apply for a self-employed mortgage from Natwest? When applying for a self-employed mortgage, you will likely need proof of income (two years), certified accounts, SA302 form and tax year overview from HMRC, bank statements, proof of ID (passport or driving license), and proof of address (driver’s license, council tax bill, or utility bills dated within the last three months). Evidence of upcoming work may also be considered.

Getting a mortgage as a self-employed borrower might feel overwhelming. But with the right info and prep, it’s possible. . NatWest is here to support you throughout the process. To get a mortgage, show income, save a deposit, have good credit, and get an Agreement in Principle. Don’t let self-employment hold you back from owning your dream home. Take the necessary steps today and start your journey towards homeownership. Get in touch with NatWest to find out more and explore your mortgage options.

Start your mortgage journey with MortgageTek and NatWest Mortgages and secure your dream home.

Contact us today to discuss your self-employed mortgage options and get personalized guidance.