Buy To Let Self-Employed Mortgage
If you are a Self-Employed individual looking for a buy to let mortgage, then it’s likely you’ve come across the phrase Buy to Let Self-Employed.
The Buy to Let product range is varied, and the good news for all applicants is that Self-Employed individuals out there can still apply for them, with the products not differing for those in full-time employment, either.
The most significant difference between applying for a Buy to Let mortgage when in full-time employment compared to a Buy to Let Self-Employed is in how the income is assessed and proven. You may not know that many of the buy to let lenders do not have a minimum income requirement, but that doesn’t mean that finding mortgage lenders who understand the requirements of the Self-Employed are hard to find.
In fact, there are plenty of mortgage lenders out there who understand the differing needs of Self-Employed customers, and these are the ones your mortgage broker will review when looking to secure you a Buy to Let Self-Employed mortgage.
Thankfully, securing a mortgage when you are Self-Employed isn’t as hard as it’s often made out to be. That doesn’t mean that you shouldn’t see a broker to gain all the advice you need. The Self-Employed out there looking for Buy to Let Self-Employed mortgages need to arm themselves with information to make the process easier.
How Can A Mortgage Broker Help Me With Buy to Let Self-Employed Mortgages?
When you approach a mortgage broker for a Buy to Let Self-Employed mortgage, you will need to prove your income. You are Self-Employed, which usually means that there have been both highs and lows to your income year to year.
You may be required to prove more than the average amount of income information to a lender, and your mortgage broker will be able to search the market on your behalf to find the right Buy to Let Self-Employed mortgage. They will look at your profits in an average year and then ask for proof of future income. If your accountant can help you with providing more than three years of Self-Employed accounts, they will accept this and help you to get approved for a Buy to Let Self-Employed mortgage.
The best tip that you can have when you are looking for a Buy to Let Self-Employed mortgage is to use an accountant. They are professionals who can offer a statement to your mortgage provider to guarantee future income, and if you do your own accounts, it may not be accepted. Some lenders will not consider mortgage income proof unless it’s been certified by a professional accountant.
Can I Get A Buy to Let Mortgage If I am Self-Employed?
Absolutely, you can. While the checks are slightly different, you can be approved. You will find that your personal income is not as much of a factor in your application, though, as Buy to Let Self-Employed mortgages are available for those who can earn almost nothing.
You can even get a Buy to Let Self-Employed mortgage with £1 profit as a landlord, and all they ask is that you have an income in the first place. Experienced landlords don’t need to have any income proof at all, which is a relief for those looking to get their next Buy to Let Self-Employed mortgage. The right mortgage broker will make a difference to your application, so make sure that you are shopping around for the right person.
How Much Can I Borrow for a Buy to Let Mortgage If I Am Self-Employed?
Borrowing potential is different for Buy to Let Self-Employed mortgages compared to those looking for a mortgage earning a full-time income. It’s less about what you earn personally from your self-employment work and more about how viable your investment is.
Almost all lenders will still ask for a projected income to cover the mortgage if you need to between tenants, but your ARLA-certified letting agent can certify this for you. The reason that they don’t need much proof of a personal income is that Buy to Let affordability comes from the rental income that you receive. Of course, you need to be able to afford your everyday life, so some lenders out there will still require you to have an income to show that you can support yourself.
Can I Convert my Mortgage to a Buy to Let one if I am Self-Employed?
Yes you can. Self-Employed individuals can swap from a residential mortgage to a Buy to Let Self-Employed mortgage. Of course, you still have to meet the eligibility requirements for a Buy to Let mortgage. You must ensure that you meet these requirements before you apply to avoid your credit rating taking the hit.