Joint Mortgage One Self-Employed, One Employed
Your new home or investment property is just a mortgage application away. And with our expertise and tenacity, that property dream is closer than you think.
Get in touch for a no-obligation chat about how we might be able to help you.
What's On This Page?
Get In Touch
Joint Mortgage One Self-Employed, One Employed
Lewis White talks about obtaining a joint mortgage where one person is self-employed and the other is employed.Can I get a joint mortgage if one person is self-employed and the other is employed?
Yes, absolutely. This is a common application type we handle, so you can certainly get a mortgage.
Can you get a bigger mortgage if one person is employed? How much can you borrow?
When one applicant is self-employed and the other employed, it’s often more flexible. Employed income is straightforward, usually taken from payslips. For self-employed individuals, particularly those with a limited company, we may consider net profits rather than drawings, potentially allowing for a larger mortgage, if one person is self-employed, as we can sometimes be a bit more flexible in terms of how we use that income.
How does one of you being self-employed affect your eligibility for a joint mortgage?
Being self-employed doesn’t affect your mortgage eligibility. However, different documents are required. Employed individuals generally only need payslips and bank statements. Self-employed applicants will also need business bank statements, along with both business and personal tax calculations, meaning a few more documents are typically needed.
Are there any specific requirements or restrictions on joint mortgages if one is self-employed and one is employed?
Generally, there aren’t many significant restrictions. While some lenders offer special deals to first-time buyers, allowing them to borrow more, these aren’t currently available if one applicant is self-employed. However, this is quite niche, and in general, there’s not really many restrictions um if one of you is self-employed.
What obstacles might self-employed individuals have to navigate when applying for a joint mortgage with someone who is self-employed?
The main hurdle I foresee is ensuring your tax documents are up-to-date. From 1st October this year, most mortgage lenders will require your tax calculations for the year ending 2025. So, if you’re looking to purchase a house, just make sure you’ve completed all necessary tax calculations and spoken to your accountant to be fully prepared.
Speak To an Expert
Come on in and be quite forward with what you’re after – just be very honest with your mortgage broker. It’s good to make sure that we know absolutely everything about you. That way we can’t be blindsided by a lender. An open book policy is very good when coming to see your mortgage broker.
What should self-employed individuals know about the income assessment process for a joint mortgage application with an employed person?
The income assessment, again, can vary a little bit depending on how the business is set up, a few lenders assess it differently. If you’re a sole trader, some lenders will just look at the latest year’s tax calculations. Others will look at an average of the last two years. It’s really best speaking to a broker as the affordability can change quite a bit depending on the lender.
What factors do lenders take into account when assessing the affordability of a mortgage for joint self-employed and employed applicants?
For employed applicants, affordability is typically assessed using payslips and potentially a P60 to determine income. For self-employed individuals, it depends on their specific employment structure, considering factors like personal drawings from the business and net profits.
Are there any specific types of joint mortgage products designed for where only one applicant is self-employed?
No, not to my knowledge. Your employment type doesn’t dictate the mortgage products available; you just need to meet the specific lender’s criteria.
Can you benefit from any government schemes when applying for a joint mortgage when one person is self-employed? That’s quite specific, isn’t it?
Yes, there aren’t any specific government schemes exclusively for self-employed individuals. You’re still eligible for all the standard schemes available to employed people, such as shared ownership.
Are there many lenders or mortgage brokers for joint mortgage applications where only one is self-employed?
Virtually all lenders will consider self-employed income, but their assessment methods for affordability do vary slightly.
Have you got anything else you’d like to add?
Affordability varies significantly between lenders, particularly for self-employed applicants. Each lender assesses income differently, some using net profits and others an average of recent years. Consulting a broker is essential to explore the market and maximise your borrowing potential.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.