Getting a mortgage for a flat may be straightforward, as long as the flat is not a high storey flat.

To get a mortgage for a flat you will need:

  • Your bank statements for 3 months
  • Pay slips for 3 months
  • Your tax returns
  • Your proof of mortgage deposit

Getting a mortgage for a flat whilst self-employed:

Being self-employed means mortgage lenders may find it hard to prove your mortgage income.

As a self-employed borrower looking to get a mortgage for a flat you may need the help of a self-employed mortgage broker to help you understand your mortgage options.

As long as you are able to prove your income to the mortgage lender then you may be able to get a mortgage.

Mortgage lenders will usually want to see at least 12 months worth of accounts although it may be possible to get a mortgage without this.

To get the ball rolling ensure you have your SA302 from HMRC and have compiled a set of accounts for the past few years of your self-employment from an accountant.

Getting a mortgage for a flat with bad credit:

Getting a mortgage for a flat with bad credit may be possible but you will likely need a bad credit mortgage broker to advise you on the mortgage lenders that may be available to you.

Bad credit usually means you may have to pay an increased mortgage deposit in order to get a mortgage offer from the lender or you may have to pay a higher APR.

Bad credit could include:

  • A CCJ
  • An IVA
  • A debt management plan
  • A default
  • A bankruptcy)
  • A home reposession

Government schemes with mortgages for flats

You may be able to use a government scheme to enable you to get a mortgage for a flat by reducing your total cost of purchase or by increasing your mortgage deposit.

They are:

  • Lifetime ISA- gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
  • Help to buy ISA- gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
  • Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
  • Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
  • Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
  • Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
  • Right to buy- allows you to buy your home at a discount price.
  • Preserved right to buy- same as above.
  • Right to acquire- same as above.

You may also be able to use a host of mortgages with the help of your family.

They are a certain type of mortgage known as a family springboard mortgage, they include mortgages from lenders such as the Barclays family springboard mortgage, the lloyds lend a hand mortgage or the post office family link mortgage.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.