Joint Mortgages One Applicant Self-Employed

Get in touch today to discuss the most suitable mortgage option for you.

Can you get a joint mortgage if one applicant is Self-Employed?

Applying for joint mortgages can be attractive as you can combine your incomes to end up borrowing more. You will be glad to know you can still access a joint mortgage even when one applicant is Self-Employed. The difference is in how each of you will prove your income.

It can sometimes be worth putting the PAYE mortgage applicant down as the first name on the mortgage due to their income being easier to find via the payroll. Both of your credit scores will be considered, and both must be good to access a joint mortgage too.

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

The amount that you will be able to borrow for your mortgage will depend on your income and your credit history. Lenders will investigate your credit to make sure you are not a high-risk borrower and to ensure you can afford the mortgage you are applying for.

By going in for a joint mortgage you are going to be able to borrow more together to put towards a house, but you will both be liable to repayments on your mortgage.

Typically, you can expect to access up to five times your combined annual salary if you are Self-Employed your lender will most likely work out an average annual salary. If you are on a day rate, they will take your rate and multiply it out to get an estimated annual income too.

If you are Self-Employed, it is advisable to speak to an accountant before approaching lenders. Many lenders also look to ensure you use a chartered accountant too so ensure you check the lender’s criteria too.

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

You will still need to provide the standard documents to prove your identity such as:

  • Driving License
  • Passport
  • Utility bills
  • Council Tax bills
  • Bank statements

If you are Self-Employed, you will also need to provide additional documentation to prove your income. The documents you provide will vary depending on what type of Self-Employed you are. Lenders can ask for up to three years of accounts.

Sole Trader

You will need to gather your Tax Calculations and Tax Year Overview from HMRC to provide to your lender to show your income and the tax you have paid. Usually, lenders will want you to do this through a chartered accountant if you haven’t already.

Partnership

Mortgage lenders are going to want to see your share in the company as well as the net profits. If you have retained profits in the business, it can be worth approaching a specialist lender as not all lenders will take this into account as an income figure towards your mortgage. You will also need to declare any dividends you have paid yourself too.

Limited Company Director

You will need to provide your director’s salary as well as any dividends and retained profits. Not all lenders will take retained profits into account so if you want this included in the calculations you may need a specialist lender.

Contractors

If you are paid via a day rate, lenders will multiply this figure out and give an estimate on an annual income. You need to provide past contracts, as back as three years if you can and any upcoming work too. Too many gaps in contracts can raise concern in lenders so you would be best to keep gaps between at a minimum.

Does a mortgage have to be in joint names?

A mortgage does not have to be in joint names, and you could take one out individually and buy a property but that depends on your own circumstances. It is a very big commitment to go in for a joint mortgage and you will always be liable for mortgage repayments. It will be up to both named on the agreement how this is divided – the same goes for sharing the equity.

How can a Mortgage Broker at Mortgage Marketplace help me?

Here at Mortgage Marketplace, we keep our expert eyes on the ever-changing mortgage market and we also have access to the independent mortgage market too. This means we can access mortgage products that have competitive rates to those high street lenders.

We will help with the gathering of documentation as well as the whole Self-Employed joint mortgage application process. We are authorised and regulated by the Financial Conduct Authority meaning we are qualified to give the advice you seek- get in touch with a Mortgage Broker today.

Frequently Asked Questions

Call us today on 0800 170 7474 to discuss your borrowing potential and eligiability.

We believe in being competitive and transparent on fees.

Your initial mortgage consultation is free. You won’t be asked to pay a fee until we have submitted an application on your behalf.

Our fees depend on the product – see the list below or speak to an advisor.
Residential Mortgage & Remortgage
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee of £595.00 payable on receipt of mortgage offer. Total fees payable – £990.00.

Buy-to Let Mortgages & Remortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee from £595 up to 0.50% of the mortgage offer. For example, loan amount £200,000, broker fee payable could be £1,000.00. Total fees payable £1,395.00. A minimum broker fee of £595.00 will be applied on all buy-to-let applications.

Equity Release Mortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee of £1100.00 payable on completion of your mortgage. Total fees payable – £1,495.00.

Credit Repair Mortgages
Application fee of £395.00 payable on receipt of the lender’s decision in principle and our broker fee equal to 0.5% of the mortgage offer. For example, loan amount £200,000, broker fee payable could be £1,000.00. Total fees payable – £1,395.00. A minimum broker fee of £595.00 will be applied on credit repair applications.

Life Insurance
No fee will be charged by us. You will receive a free quotation from the policy provider.

Typically, the mortgage process will take 2-6 weeks to reach approval.

A mortgage offer is usually valid for 6 months.

Please be aware, the process is currently taking longer due to Covid-19. Please see question ‘How has Covid-19 affected the mortgage market?’.

Whilst you are not required to take out a life cover, our job is to ensure your mortgage is affordable, no matter what. It may not be nice to talk about, but if something were to happen to you, you want to know your family and investment are safe.

We will advise on all the options available and provide a no obligation quote from our partner providers.

You may need a solicitor, depending on the circumstance. Your adviser will discuss this with you, and should you need one we can put you in touch with our trusted partners, or you can use you own.