Can I get a mortgage with 1 year's accounts?
Self employed people are key drivers of the economy. As wealth creators, they are a critical ingredient of economic growth, but when it comes to getting a mortgage they are treated as financial pariahs by the majority of mainstream lenders.
Before lending to self employed people, most banks need to be confident that the long term future of the business is both stable and profitable and to judge this they require at least two years of accounts. Entrepreneurs who are in the early stages of establishing their businesses are therefore excluded as they have insufficient trading history for the lender to make a decision. Fortunately, if you are newly self employed and have only one year's accounts, there are some mortgage lenders who are less rigid in their outlook and will consider people who are just embarking on self employment.
As expert mortgage advisors, we fully understand the needs of self employed borrowers. We have direct business relationships with lenders who underwrite each case on an individual basis and can lend on one years' accounts. We will approach the most appropriate lender, whether it's on the high street or a specialist, for your circumstances.
Simply complete the online enquiry form for a FREE initial advice.
Some lenders accept 1 year's accounts or SA302 and HMRC tax year overview as a proof of income with no minimum trading period.
Providing you have been self employed for a period of 12 months or more, there many be lenders who can help.
See which lenders offer the best self employed mortgage deals
There are options
A finite number of lenders are looking to differentiate themselves by providing mortgages for those people who aspire to be the wealth creators of the future. Unlike their mainstream counterparts, they do not use a computerised scoring system to determine which borrowers are creditworthy, but instead use an underwriter to assess applications individually and even though a three year profit history is desirable, they will consider applications from those with just one year's trading history.
As a self employed borrower, your chances of obtaining a mortgage will be enhanced if you have a glowing credit score and a bumper sized deposit. The greater the deposit, the more likely you are to be considered. If your credit history is somewhat tarnished, there may still be options, all will depend on the severity of your problems and how recently you encountered issues.
Focused on providing a solution
We focus on providing mortgage solutions to self employed people. Our extensive knowledge in this area means we know which lenders are more accommodating of people with non standard requirements. We'll assess your situation and determine mortgage affordability, liaise with lenders on your behalf and assist you in preparing all the necessary documentation.
Specialist lenders tend to only be available through mortgage advisers, so you cannot apply directly, therefore it's important to seek advice from advisers who have extensive experience of dealing with this market.
Contact us today for professional advice.
