Employee and Sole Trader VS Mortgage Application

Frank1e · 02-04-2020 12:58PM #1

I'm employed by a company as a direct employee. I am registered as a sole trader (for less than 1year) also.

I have a seperate business bank account (with the same bank) to keep personal/business transactions seperate and transparent.

I plan to apply for a mortgage through my personal account, so am guessing the bank will see my business account and ask questions if necessary also?

I understand mortgage applications for sole traders require producing at least 3 years of accounts (given the sole trader mortgage applicant is likely generating income primarily from sole trader profit) However, if I generate my wealth from wages as an employee - to what extent would being a sole trader in addition be as regards a mortgage application?

Gloomtastic! · 04-04-2020 07:26AM

Banks will be looking at your ability to repay the mortgage, first and foremost. They want to see regular income now and in the future.

The trouble with self-employment is, it’s not very stable. It’s you, working at the behest of others. Look at the current crisis, the self-employed have been decimated.

In your case, I would look for a reputable mortgage broker who has dealt with self-employed before. They’ll know the lenders willing to deal with you.

Good luck!

Employee and Sole Trader VS Mortgage Application

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