Many entrepreneurs and business owners come to us with two years' trading accounts but are unsure how much they can borrow, or even if they can get a mortgage.
This short guide aims to answer those questions and many more, providing the clarity you need before applying for a self-employed mortgage.
- 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?
- How will lenders assess my income if I earn less in my second year?
- 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 books, the majority of mortgage lenders are happy to consider your application, subject to meeting their other eligibility criteria.
Some lenders will want to see a 3 year trading history first, but two years is the sweet spot where most providers, including many mainstream banks and building societies, become available.
There are other, mostly niche lenders, willing to look at mortgage applications from self-employed people with just 1 year's accounts.
But with fewer deals and rates on offer, you may not necessarily get as good a deal as someone with two years' accounts. The lender may also require a larger 10-25% deposit.
Will I pay more for my mortgage with just 2 years' accounts?
No. With a two-year trading record, there are plenty of mainstream self-employed mortgage deals available from banks and building societies, as well as other specialist lenders.
Is it worth waiting to complete 3 years' books?
Generally, no. With 3 years of accounts in the bag, a few more lenders might open up to you. But most mainstream deals are available to self-employed applicants with just two years.