North Hampshire Lifestyle Nov - Dec 2021

Five ways to prepare for
your mortgage application
if you are self-employed or
a contractor.
Recent research by Aldermore Bank revealed
self-employed workers in the UK are pessimistic about
their home buying chances, it seems the pandemic
has intensified their difficulties in getting a foot on the
housing ladder.
However, there are ways. Many specialist mortgage
lenders have lending options which can provide a route
to homeownership for the self-employed. Unlike many
high street banks, specialist lenders can dig into the detail
to understand the income streams and investigate the
mortgage opportunities available.
Our top tip is that you need to be well prepared before
making an application. Make sure you prepare the
documents and information the lender will need to give
your mortgage application its best chance of success.
Here are five ways to prepare for your mortgage
application if you are self-employed or a contractor:
1. Evidence of two-three years of accounts: Lenders
will typically ask to look at two to three years’ worth
of accounts. Since Covid-19, it is also important to
show your business has recovered to pre-pandemic
levels and be able to explain to a lender what
Covid-19 business incentives you took, including
amounts repayable.
2. Get your paperwork in order: You will need to
provide the relevant documentation to prove your
income. Making sure you know which documents
lenders will ask of you and having them to hand
will save time and help speed up the process. See
our Tax Guide at www.newbury.co.uk/filer/
sharing/1619639586/4234/ which explains what
lenders will typically ask to see to prove your income.
3. Evidence a steady stream of work: To prove you’re
a reliable borrower, it’s important to demonstrate a
steady stream of work which has been maintained
over time. It’s also important to show a strong pipeline
of upcoming work.
4. Review and Improve your credit profile: Checking
your credit profile is an important step especially
if you have had credit commitments in the past
and it can be a worthwhile process to check all old
commitments are up to date.
There are several ways to boost your credit profile.
Simple steps such as registering on the electoral roll,
paying off debts and meeting regular payments will
over time make a difference. See our guide at
www.newbury.co.uk/news-knowledge/blog/10-
tips-improve-your-credit-score/
5. Save a larger deposit: Having a larger deposit will
improve your chances of securing a mortgage and
could enable you to buy at a higher price and provide
you with a better mortgage product. Review your
expenditure and see where you can afford to cut
back and put towards your deposit. You could utilise
restricted access savings accounts to benefit from a
more favourable interest rate.
Alton branch: 47 High Street, Alton, GU34 1PF
Call: 01420 84275 Email: alton@newbury.co.uk.
Basingstoke branch: 5-6 Chelsea House,
Festival Place,Basingstoke, RG21 7JR
Call: 01256 816813
Email: basingstoke@newbury.co.uk.
Sammy Forrester, Alton Branch Manager and Lisa
Wedge, Basingstoke Branch Manager.
YOUR MORTGAGE IS SECURED ON YOUR HOME. THINK CAREFULLY
BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME
MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR
MORTGAGE.
Newbury Building Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct
Authority and the Prudential Regulation Authority (Financial Services Register number 206077). English Law applies and
we will communicate with you in English. We are participants of the Financial Ombudsman Service. We have a complaints
procedure which we will provide on request. Most complaints that we cannot resolve can be referred to the Financial
Ombudsman Service. 8452
Newbury
Building Society