How to get a Mortgage if You’re Self-Employed with Bad Credit

Applying for a mortgage as a self-employed worker can be a more complicated process. If you also have a bad credit history then things become much trickier.

By following this guide, you’ll have a better understanding of how to find the right lenders who can help someone in these situations and what process you should follow in order to give your application the best chance of success.

Can you get a mortgage if you’re self-employed and have bad credit?

Yes, it’s possible. Whilst your chances of getting a mortgage with a mainstream lender might be slim, there’s a number of specialist lenders who have the knowledge of how to help someone with a bad credit record.

Who will offer you a mortgage and how many options you will have depends on:

If you have at least one year of accounts whilst working for yourself and your adverse credit details are within certain thresholds, then you will have some choice as to which lender to use for your mortgage. Those thresholds vary but can include having only one CCJ in the past 12 months or a years’ evidence of full adherence to a current debt management plan.

However, if you have more than one item reflecting bad credit on your report within the past 12 months, your options will shrink. Similarly, if you only have three months of accounts or are working with financial projections, the number of potential lenders who can help you will be smaller.

It’s also worth noting that in relation to lenders willing to work with applicants with a bad credit history, some lenders will view them the same as employed applicants earning through PAYE, while for others, the self-employed element might further complicate the chance of success.

What’s the best way to apply for a mortgage in these circumstances?

If you’re self-employed with a bad credit history, there’s a number of straightforward steps you can take to give your mortgage application the best chance of success…

Finding the right mortgage lender

It probably won’t surprise you to hear that you may not have heard of the lenders who cater for people in this situation. That’s because specialist lenders work directly with mortgage advisors and brokers and aren’t available on the high street or even online for customers to contact.

Specialist lenders who are known to offer bad credit mortgages and cater for the self-employed include.

However, even though they will consider various bad credit activity and self-employed applicants on a case by case basis, your best bet for finding a lender who offers mortgages to people who fall into the self-employed and bad credit niches is a specialist broker.

Your mortgage broker will identify which lenders are best placed to help with your particular situation. They’ll basically manage your application from start to finish so you’ll never feel like you’re doing this on your own.

Get matched with a mortgage broker who works with self-employed applicants

When you have a mix of complex issues relating to your finances and employment, the easiest and most stress free way to apply for a mortgage with a good chance of success comes by speaking with someone who has the expertise of dealing with these types of circumstances on a daily basis.

This is why the shrewdest decision you can make, right from the beginning, is seeking the help of an experienced mortgage broker. Their insider knowledge of how to frame applications for someone who has a bad credit record could prove invaluable.

Call 0808 189 0463 or make an enquiry and we can arrange a free, no-obligation call with a mortgage broker who has experience of arranging bad credit mortgages for the self-employed today.