Joint Mortgage When One Applicant is Self-Employed

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Joint Mortgage When One Applicant is Self-Employed

You might be wondering if the fact that one of you is applying for a joint mortgage is self-employed, will this have an impact on your mortgage application? In short as long as you both have good credit ratings and proof of your income then there is no reason why you will not have options when it comes to picking a mortgage.

Can I get a Joint Mortgage if one Applicant is Self-Employed?

A joint mortgage means that everyone named on the mortgage is responsible and liable for payments to be made. You can still apply for a joint mortgage if one applicant is self-employed.

Your profits over the last year will represent your share of the income. You will more than likely be required to show profits for between two and three years. It is important to keep in mind that if you do not keep up with repayments on your mortgage then your home may be repossessed.

How much can you borrow if one applicant is Self-Employed?

Both incomes will be used and the combined income will be multiplied depending on the lenders criteria to work out the maximum you can borrow. Mortgage lenders will look into both mortgage applicants credit scores initially to ensure that you can handle your finances. Provided that you have a good score and fit the lenders criteria you could end up borrowing up to five times your annual salary to help you buy a property.

As you are applying for the mortgage as a unit then lenders will treat your income as such too. This means sometimes family members and couples can end up going in for a joint mortgage in order to be able to borrow more.

Lenders will take into account your income, credit report and your monthly outgoings before calculating an amount you may be able to borrow. If you are self-employed you should aim to provide three years of accounts to show your tax documentation.

It is worth thinking about how you are applying if you are self-employed, under which category. How your income is worked out can differ between lenders and depends on whether you are a sole trader, partnership or limited company.

What documents do you need if one applicant is Self-Employed?

If you are Self-Employed you will need to provide additional documents alongside your mortgage application. The documents you will need to provide will depend upon which category of self-employed you fall into. Lenders usually ask for two years worth of accounts and two years SA302’s (which are your self assessment tax returns).

Sole Trader

You need your SA302 forms as well as have your tax overviews ready to provide to a lender. Lenders require different things but one thing all lenders will require is proof of your income and proof you have paid towards the tax year properly.


If you are part of a partnership, a lender will look at your share of the net profits. Make sure you have net profit and any other figures ready – at least two years’ worth if you can, some lenders require three. It can be worth seeking specialist loans if you have a lot of money tied up in retained profits.

Limited Company

You will need to provide the director’s salary and dividend payments. If you choose to retain profits in your business rather than drawing them out then there can be difficulties in calculating the amount you can borrow as some lenders will not factor them in, others will.

How much deposit will I need?

You will currently need at least a 10% deposit ready. It is important to remember that if you can provide a bigger deposit you should do so as it can gain you access to lower and exclusive rates from mortgage lenders.

Does a mortgage have to be in joint names?

You do not have to apply for a mortgage with two people, you can get a mortgage by yourself too. Joint mortgages are a popular option among couples as the combined income allows them to borrow more.

How can a Mortgage Broker help?

Here at You 1st Mortgages we pride ourselves on putting you first and will listen to your current situation as well as what you want from a mortgage. We will be able to guide you to the right lenders for your situation.

We are authorised and regulated by the financial conduct authority and use a panel of lenders with access to exclusive rates. This means we can access products that are not available on the high street.

We can guide you through your mortgage application and make sure you are making the most out of your Self-Employed income.

Get in touch with a member of You 1st Mortgages today for advice on your joint mortgage application…