Whilst being your own boss has its upsides, one of the drawbacks is that it can be trickier to get a mortgage.
Right or wrong, mortgage providers prefer the predictable, consistent income enjoyed by people in full-time jobs. And despite the often precarious nature of employment, an employee represents a lower risk for the lender's security.
Nonetheless, getting a mortgage if you're self-employed doesn't have to be complicated. Before buying a property, seek specialist advice from an experienced self-employed mortgage broker. Their understanding of lenders' income requirements and eligibility criteria are key to getting a great deal.
- Can I get a self employed mortgage with 1 year's accounts?
- Is it possible to get a mortgage without any accounts?
- How much can I borrow?
- What mortgage deals are available to the self-employed?
- How is my income assessed for a mortgage?
- I have bad credit. Can I still get a mortgage?
- Is Help to Buy available to me if I'm self employed?
- Getting a self-employed mortgage quote
Can I get a self employed mortgage with 1 year's accounts?
Absolutely. Whilst it's fair to say getting a mortgage with just a single year's books is trickier than if you have two, there are still a few lenders happy to consider it.
Your year one accounts and self-assessment tax return must have been submitted to HMRC and lenders will want to view your business bank statements for the last 3-6 months of trading.
Some lenders additionally ask for a signed letter or form from your accountant outlining your financial projections for the current year.
Is it possible to get a mortgage without any accounts?
No. There are currently no providers willing to lend if you're newly self-employed, and yet to complete your first year's company accounts.
However, if you're coming up to your year end, get in touch. We can source you a competitive mortgage deal as soon as your accounts are submitted to HMRC.