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How to buy a house if you're self-employed?

Self-employment and home buying have been considered as the two ends of a river that can never meet. The prime reason that works as the most dominating factor is the difficulty in the attainment of the mortgage. However, the changed approach of the new age mortgage industry is committed to facilitating easy financial assistance.


First, know about the challenges

When you know about the hurdles beforehand, you can work on the remedies in a better way.

  • Countless questions on revenue stability as some months can be weak on the income part.
  • Not understanding the type of business, especially in the case of mortgage companies.
  • Issues on tax returns.
  • Credit score performance expectations.
  • Statistics of self-employed in the UK. Around 15% of the population is earning on its means not an employee of a company or some boss. This percentage is increasing but has not covered a big part of demography yet. Mostly the property market considers the people in the job as more promising buyers.

What comes as the first requirement in home buying?

Property buying? Mortgage search?

Both should go together


A complete guide on home buying as the self-employed needs to be followed to get your house smoothly.


As the case of self-employed homebuyers is always a bit tricky, it is better to work on both the parts altogether. After taking a glance at the challenges, now, work on the solution and make the big purchase. A step-by-step approach with both the property search and mortgage search concerns solved.

(a) Property part (b) Mortgage part

It is the categorisation of the two critical matters on home buying when you are your boss.

The preconditions

Few things come first, and few come later. These are the 'first' in sequence.

(a)The property part – (Find the agent and finalise the property)

A local agent that shows you properties should always be familiar with your employment type. You know the reason behind this. Yes, the people who are their boss have different circumstances to face in the real estate market.


Maybe your agent has dealt with some self-employed buyer in the past and can apply the same tactics to help you buy home. The property agents know everything about the market. They may make you aware of future challenges or issues. With all the critical factors, the final selection of home becomes easy. There can be particular locations of the city that are friendlier to home buying for people with their business.

(b)The mortgage part – (Improve financial conditions and look for mortgages/mortgage brokers)

A home loan is the ultimate reality for you as a homebuyer, and the first thing that comes under notice is your financial situation. The mortgage companies always want to know if the applicant can repay the funds or not.


For a self-employed, the war is on the two fronts. The fiscal conditions of the business and the personal finances confront scrutiny.


  • Keep the money matters untangled not entangled
  • Tax should be paid on time.
  • The business accounts should be ready (last two years are typically required).
  • Keep the business and personal finances separate.
  • Personal bank statements should be there.
  • Make timely payments.
  • Do not take any new debt neither on personal finance like - a personal loan nor on the commercial one like a business loan.

With financial improvements, start searching for the mortgage deals. The task is undoubtedly not accessible due to the type of employment. It can be not very clear to know precisely which lender offers mortgage deals for the self-employed applicants.


The familiar ritual to follow in such conditions is to look for brokers. A self-employed mortgage broker such as can bring you the most relatable deals without any time wastage. It can even tell you the ways to boost your chances of approval. Choose the broking companies with many lenders, it if not tough to find the broker with 90+ lenders or more than 100 maybe.

Take things to the end

As the preconditions are done, it is now time to bring things on the ground of materialisation.


  1. Property part - Hire a solicitor for legal things after you finalise and book the property.

Home buying is never devoid of legal matters. For buyers under the tag of self-employment, legalities become even more important to know where they may face issues.


A solicitor performs the following tasks – 

  • Conveyancing – The transfer of ownership from the one owner (the property seller) to the other (the final buyer).
  • Legal searches of property – This search tells how a property performs on varied parameters. For example – Will it be strong enough to tackle earthquake jerks?
  1. Mortgage part – Exchange of contracts gives a green signal to the mortgage provider.

A lender never transfers funds until it gets the legal confirmation after the property search that the house is a safe investment. Once the search is over, the contract exchange between the homebuyer and the seller happens. It is the ‘yes’ to the lender to transfer funds and FINALLY, YOU BUY THE HOME. CONGRATULATIONS!!

The thing is...

The above collection of information is crisp. It serves the water to the roots of your desire to get the solution. Forget about the lengthy procedures. As mentioned above, when you know the challenges, the answer becomes smooth. The information deals with the precise concerns of property buying for a self-employed without letting any unnecessary thing coming in the way.


What are you waiting for now? Remove all the misinterpretations and fears from the mind and try to work in the required direction. Stay practical because problems may come, but they are also destined to get vanished if appropriately treated.

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