How do I buy a house when self employed?

If you’re self-employed, the process for obtaining a mortgage can be more complicated—but it doesn’t mean that you should rule out your chances.

Here are some tips to help improve your chances of obtaining a mortgage and buying a home:

• Think twice about switching your business structure prior to your application: If you're thinking about going from being a sole trader to a limited company director, it's best to delay your application until you have one year's worth of books. If you apply before that, you may be offered a smaller mortgage, or have to choose from a limited selection of lenders.
• Avoid taking extended breaks prior to your mortgage application: Lenders want to see stability in your work flow and income, so it may be best to avoid taking extended breaks longer than six to eight weeks a year or two before you make your mortgage application.  
• Consider mortgages that allow for over payments: As a self-employed individual, you'll likely experience peak periods that bring along a greater influx of funds. It can be worth looking into mortgages that allow for over payments, since you'll be able to make over payments (above your monthly repayments) when you can afford to, and as such pay off your mortgage more quickly.
  

For more tips and information, refer to our guide on getting a mortgage when self-employed.