Q After many years of working at the same job in Leeds, I am considering going freelance and moving to a new city. I’ve been craving change for a long time and this feels like a challenge I need. It seems, however, in doing so I will have to say goodbye to being a homeowner and return once more to renting. My current fixed-term mortgage ends in November this year. As I understand it, a freelancer needs two to three years of income history before they can apply for a mortgage. Is this the case and am I being reckless selling a house that I worked so hard to buy and going back to renting during a cost of living crisis when rent is so high? Any thoughts or advice would be extremely appreciated.
RW
A Yes, you are right in thinking that any self-employed person – which includes freelancers, contractors, sole traders and small-business owners – applying for a mortgage will need to provide at least two years’ evidence of a regular income with account statements as well as self-assessment tax forms for two complete tax years, if not three. So that would rule out getting a mortgage if you decided to sell up in Leeds and move to a new city, and it would also mean that you would have to go back to renting.
