Refused mortgage due to self-employment grantSome providers refuse self-employed mortgage applications from those who have used the Self-Employment Income Support Scheme (SEISS) as it could be a sign that their employment is uncertain or that they’re experiencing financial difficulties. Two lenders said they would need to see evidence of the business having recovered from the pandemic, such as a good turnover. But as mortgage providers usually look through the last two years of accounts to calculate how much was earned, the pandemic could still be impacting self employed mortgage applications until 2023. However, not every lender will reject your application outright. Some won’t see SEISS usage as an issue, so it’s important you find the right mortgage provider to improve your chances of being accepted. This is something our expert mortgage advisers can help with. They know exactly which self employed mortgage lenders are most likely to understand your situation and provide the best rate available.
Self-employed mortgage rulesNew self-employed lending criteria have been introduced by lenders as a result of the Coronavirus pandemic. These include providing:
- At least two years of accounts signed off by a certified or chartered accountant.
- Evidence of consistent or increasing profit over a number of years.
- SA302 forms or a tax year overview for the past two or three years
- Upcoming contracts (if you’re a contractor)
- Dividend payments or retained profits (if you’re a company director)
- Council tax bill
- Utility bills dated within three months
- Six months of bank statements