Starting a business is an achievement to be proud of, but it can make it harder to secure a mortgage. As a sole trader, you may find it challenging to get approved for a mortgage, but it’s not impossible.
One thing you can do is to keep your business and personal finances separate. This means having a separate bank account for your business and filing your taxes separately. By doing so, lenders can see a clear distinction between your personal and business finances.
Another option is to build up a substantial deposit before applying for a mortgage. Lenders are more likely to approve your application if you have a larger deposit because it means you’re less of a financial risk.
It’s also important to have a solid business plan in place. This will demonstrate to lenders that your business is profitable and has a sustainable future.
When it comes to choosing a mortgage product, you can opt for a self-employed mortgage. These mortgages are specifically designed for individuals who work for themselves, and they take into account irregular income streams.
When trying to get a mortgage for sole trader it can be tough. Keep in mind that having your business and personal finances separate is ideal, and also having a good-sized deposit before applying. It’s also a good idea to have a solid business plan, and there are mortgages specifically for those who work for themselves.
Getting a mortgage as a sole trader can be challenging, but if you keep your finances separate, build up a large deposit, have a solid business plan, and consider a self-employed mortgage, you can increase your chances of approval.
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