Employee and Sole Trader VS Mortgage Application

Frank1e

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!

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!