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As specialists in helping self employed individuals and small business owners get a mortgage, we will have seen similar situations to yours many times before. Our experienced mortgage brokers specialise in mortgages for self employed, contractors, sole traders, directors and small business owners.
Lenders prefer 3 years accounts to prove income in order to borrow on a mortgage, however there are a few that consider mortgage applications for those self employed for less than 2 years, and there are even some mortgage lenders accepting 1 years proof of income. If you have recently changed to a limited company from a sole trader or a contractor status many high street banks will decline applications because you do not “tick the box”. We use lenders that are able to consider virtually any scenario and take a common sense approach.
Lenders prefer to see a steady increase in profits over the years. Some lenders take an average of trading figures and other will use the latest year or even two years. For self employed mortgages less than 2 years, the same rules apply as if trading for 1 year, as there would only be 1 years proof of income.
Self-employed mortgage applicants can borrow the same as employed applicants as it is dependant on many factors, the type of employment only being one of them. Borrowing is based on affordability but is generally no more than five times your net income.
Lenders for self employed mortgages will require one or a combination of a qualified accountant reference, finalised accounts, or a self assessment tax return (SA302) from HMRC. All other borrowing rules apply and may include 3 to 6 months personal bank statements.
Generally yes. There are lenders that will lend to self employed borrowers who have a bad credit history however due to the added level of risk involved loan to values available would be less than with self employed borrowers with a clean credit report.
Use only latest years figures
1 years accounts
Recently changed trading status to limited company
Self Employed with bad credit
90% loan to value self employed mortgage