In this jargon-free guide, find out how lender's assess self-employed mortgage applications from business owners with two years's accounts.
Plus you'll discover how maximum borrowing amounts are calculated, what documents you'll need, LTVs and much more.
- Can I get a self-employed mortgage with 2 years' accounts?
- Will I pay more for my mortgage with just 2 years' accounts?
- How much can I borrow?
- Can I get a mortgage with declining profits?
- How do I prove my income to a lender?
- I have bad credit showing on my credit report. Can you help?
- Getting mortgage advice and a quote?
Can I get a self-employed mortgage with 2 years' accounts?
Yes! With two years of accounts or trading history the majority of mortgage lenders will consider an application, regardless of whether you're a company director or sole trader.
A small minority of providers still require a three year trading history but two years is the sweet spot where most mainstream banks and building societies, become available.
Other, mostly specialist lenders can be willing to look at mortgage applications from self-employed people with just 1 year's accounts.
This is the minimum trading period, unless you are a self-employed contractor who some mortgage lenders will consider with just a few months contracting experience under their belt.
But with fewer lenders available, you may not get as good a deal. And a deposit of 15-25% is typically required.
As a mortgage broker specialising in self-employed mortgages, get in touch if you'd like to get a quote or ask a question before purchasing a property.
Will I pay more for my mortgage with just 2 years' accounts?
No. With a two-year trading record, there are plenty of mainstream mortgage deals available from banks and building societies, as well as other specialist lenders.
Mortgage products for self-employed borrowers
In general, the same high street lenders, products, rates and deals are available for self-employed people as they are for employees.
One or two lenders have dedicated mortgage products for self-employed applicants, but they tend to be for those with just one year's books, with their mainstream products available for applicants with at least two years accounts.
Is it worth waiting to complete 3 years' books?
Generally, no. With three or more years of accounts in the bag, a few more lenders might open up to you. But most lenders are available to self-employed applicants with just the two.