Joint Mortgage When One Applicant is Self-Employed 

Can I get a joint mortgage if one applicant is Self-Employed?

Joint mortgages are still available even if one applicant is Self-Employed. The only difference is in how you will both prove your income, someone’s income on the PAYE payroll system is easier to track than someone who is Self-Employed.

When you apply for a joint mortgage you need to think about if going in as joint applicants is the best option for you both. Even if you are an unmarried couple committing to mortgage payments together can mean your finances are tied.

It does not make a difference who is named 1st on the mortgage application. Everyone named on the mortgage agreement will be liable for making repayments on the mortgage. It is up to the both of you how you share the equity of the property or make the mortgage repayments – if you decided to sell the property the profits would be split amongst both parties.

How much can you borrow if one applicant is Self-Employed?

Typically, you can borrow up to 4.5 times your annual joint income, but this does depend upon both of your credit scores too. Different lenders have different criteria when determining how much you can borrow so it is always worth checking first.

You can still access mortgages with bad credit but you may find that the interest rates are higher as a result.

You need to think about how you are going to apply for a mortgage if you are Self-Employed, Every bank has different criteria so a broker will be able to advise the best lender for your circumstances. You will need to provide proof of your income which may include signed account or tax year overviews and tax year calculations.

You need to ensure you can afford the repayments on your mortgage as if you do not keep up with repayments your home may be repossessed. Lenders will run affordability checks in order to look into your outgoings and income to ensure you can afford a mortgage, it is important to have your finances in order.

What documents do you need if one applicant is Self-Employed?

You will need to provide extra documents alongside your mortgage application to prove your income. You will need to provide the standard council tax bills, bank statements and proof of identity.

You will need to bring along different documents depending upon what category of Self-Employed that you fall into.

Sole Trader

As a one man band you should have an accountant assisting with your finances. You will need to gather your tax year overviews and tax year calculation forms to show your income and the tax you have paid too.

Partnership

As a member of a partnership a lender will look at your income by reviewing tax year overviews and tax year calculations.

Limited Company

You need to show the director’s salary and any dividend payments to your lender. Retained profits can sometimes be overlooked so if this is something you wished to be considered you may need to seek a specialist lender.

It is always worth speaking to a mortgage expert such as a broker at Choice Finance to help with gathering all of the documents you will need for a mortgage application. They will be able to tailor their advice to your specific circumstance and speed up the mortgage application process.

Does a mortgage have to be in joint names?

You can easily take out a mortgage by yourself if you can afford it. Many people opt for joint mortgages to be able to combine their incomes and afford more expensive houses in comparison to doing it alone.

There are plenty of mortgage schemes out there if you are struggling to buy a property alone but would like to. There are first time buyer schemes as well as schemes that allow you to buy part of the house now and the rest later.

You can get out of a joint mortgage too by buying out the other applicant’s share or simply selling the house and splitting the profits. If you are in a joint mortgage and having issues it is worth seeking expert advice as soon as you can.

How can a Mortgage Broker from Choice Finance help me?

Here at Choice Finance, we have access to the independent mortgage market meaning we can access mortgage deals that are not available through high street lenders. There are many different routes to obtain a mortgage and here at Choice Finance we want to know you have made the right choice for you.

Our team of expert Mortgage Advisers are ready and waiting to give tailored expert advice which is authorised and regulated by the Financial Conduct Authority. Some Self-Employed applicants benefit greatly from seeking a specialist lender and here at Choice Finance we know where to find lenders to fit your needs.

Choice Finance Mortgages & Financial Solutions Ltd trading as Choice Finance is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE