Would some else be willing to work for the hourly rate you have set? Because the business is your baby, you might be willing to take a pay cut so you can do what you love. It’s unlikely that anyone else will be willing to earn less than their market value though to work for your business. If you needed someone else to do the work for you, does your price allow you to hire someone at the hourly rate they will expect. This is very important if you would like to grow your business and have a team.
It isn’t just a numbers game when it comes down to being approved for a mortgage, a lender will look at a wide range of factors before accepting you.
Here are some of the key things you can do to improve your chances:
A mortgage adviser will be able to help you with the process of buying a home. If you feel like you don’t earn enough or haven’t been trading long enough to be approved, the best thing to do is speak to a good mortgage adviser to weigh up your options.
The main issue with getting approved for a mortgage while self-employed is regarding proof of income. As self-employment naturally has fluctuating income, you will need to show consistency in your finances in order for the lender to approve you.
If you are self-employed then a 5% deposit might not be enough to secure a mortgage. A larger deposit is a start but you’ll likely have to provide a fair bit of additional information. A quick breakdown of what you might need can be seen below.
However, these are minimum requirements. In most cases, lenders will prefer up to three year’s worth of accounts to show.
You’ll also need to make sure that you have all the relevant documents at hand when applying. These can include the following:
Finding out halfway through the process that you are missing vital information will only slow the process down, likely costing you more money in the meantime. Make sure you do your research and get professional advice if you’re unsure of anything. Being rejected for a mortgage can end up becoming a problem on your credit record if you’re not careful, which can harm your chances in the future!