Mortgage advice: does employment status affect mortgage eligibility?

When it comes to applying for a mortgage there is a common misconception, usually amongst the self-employed and Company Directors, that they won’t be eligible for a mortgage. If you’re working for yourself as a means of obtaining income and believe you won’t qualify for a mortgage then think again.

However, a lender will always bear in mind the stability of an applicant’s employment status, as the lender must be able to determine whether or not the applicant has the capability to repay a loan. Although the income of a self-employed individual or Company Director is typically more variable in nature in comparison to a salaried individual and is therefore more difficult to calculate, it doesn’t mean such applicants are not eligible for a loan.

Self-employment mortgage eligibility

It’s important to understand the requirements that mortgage lenders make on self-employed individuals in order to avoid unnecessary headache.

Requirements differ from lender to lender but, typically, there is a minimum trading requirement with mainstream lenders of two to three years.

If you’re self-employed and considering applying for a mortgage then you must be willing to provide documentation, including your income over recent years, profit, balance sheets and more. Although it seems like a lot of paperwork, Mosaic Mortgages are on hand to guide you throughout the mortgage process and help you every step of the way.

Regular employment mortgage eligibility

Typically, the employed applicant must have been in their current job for at least six months or, failing that, they must have previously been in continuous employment for six months. However, lending requirements differ and there will be some lenders that will go outside these guidelines.

Mosaic Mortgages, an independent mortgage adviser

Mosaic Mortgages are able to scan the entire mortgage market, in search of a lender who is sympathetic to your individual circumstances. As we are not linked to any particular panel of lenders, we are able to offer truly independent mortgage advice that you wouldn’t normally receive at a bank or a large mortgage-lending agency.

If you’d like to know more about your mortgage eligibility then why not call us now on 01604 330240 and speak to one of our specialist mortgage advisers.

First-time buyer mortgages and more

At Mosaic Mortgages, we understand that the mortgage process can be a little daunting. With this in mind, we will also try to go above and beyond to ensure everything runs as smoothly as possible for you.

Whether you need a first-time buyer mortgage, bad credit mortgage or a CCJ mortgage, we are able source the most suitable mortgage product for you.