Navigating self-employed mortgage hurdles

Obtaining a mortgage as a self-employed individual can be challenging due to extensive paperwork and the impact of creative accounting on reported income. Broker Mike Staton highlights the dilemma: "Many self-employed borrowers want to beat the tax man [sic] and the mortgage man [sic] at the same time but this is impossible." Experts recommend maintaining clear financial records and preparing documentation for the past one to two years. David Stirling from Mint Mortgages advises that strong, consistent accounts are crucial for a successful application. Different lenders have varying criteria, with smaller lenders often more accommodating. Jack Tutton from SJ Mortgages notes improvements in the process, as some lenders now seek accountant references to verify accounts, enhancing success rates. However, caution is advised against brokers who may overstate their expertise in self-employed mortgages. 

Sky News (16/11/2024)