Being self employed should not offer up any problems to a mortgage lender, provided you can provide the necessary proof of income. This should consist of two to three years’ audited accounts, details of two or three years’ Inland Revenue self-assessment or a letter from your accountant. The lender will check that the accountant exists and that you are a client.

This will throw up problems for anyone who has been trading for less than three years in which case you will need to look at self-certification mortgages. Most lenders will ask that you have been in business for at least twelve months before they consider you for any mortgage.

As with any borrower, your personal circumstances will guide you towards a particular type of mortgage. Generally, flexible mortgages are valued by the self-employed due to their fluctuating income. This will allow them to make over and under payments. It may also allow you to borrow back overpayments to cover your year-end tax bill. This will have the added bonus of reducing your interest charges.

Other areas to look into: self employed benefit, self employed book keeping, inland revenue for the self employed