Joint Mortgage One Self-Employed

Joint Mortgage One Self-Employed

Applying for a joint mortgage is a great way to increase your borrowing potential and buy a higher priced home. But how does it work when one of the applicants is self-employed?

Can you get a joint mortgage with someone who is self-employed?

It’s very common for joint mortgages to include one, or even two, self-employed applicants. Some self-employed people find they have better success when applying with someone with a PAYE income, especially if they have credit issues.
You will have access to the same mortgage lenders and products as anyone else. As part of the mortgage application, the lender will assess your income, outgoings and take a look at your credit scores.

How much can you borrow if one applicant is self-employed?

Mortgage lenders will generally base the loan amount on your combined income, multiplied by four or five, depending on their criteria.
So if you earn £40,000 on PAYE and your Self-Employed partner earns around £30,000 per year, your combined income is £70,000. You could therefore potentially borrow up to £350,000 on a mortgage.
Talk to a mortgage adviser or use a mortgage calculator to understand what this loan amount might mean for the repayments on your mortgage, and make sure they are comfortably affordable.

What documents do you need for a joint self-employed mortgage?

The mortgage lender will ask for different proof of income for each applicant. The employed person will usually need to provide a few months worth of payslips to confirm their salary.
Meanwhile, self-employed people often need tax records or company accounts for the past one to three years.
Both applicants will need certain personal information too, including proof of ID via a passport and driving licence, recent bank statements and proof of address.