New business owners who have just started working for themselves may struggle to get a mortgage. That should come as no surprise to you. But this does not make it impossible to get a mortgage. Your application you can buy that property you have dreamed about you may just have to seek assistance.
Ever since the financial crisis of 2008/2009, mortgage lenders have changed the way they process applications for self-employed mortgages. They will no longer accept self-certification to approve a mortgage for a self-employed applicant.
Legally, you now need to prove your earnings. This is to ensure you are going to be able to afford to pay back the loan. This also ensures that the lender has made a responsible decision in giving you a mortgage.
In most cases, lenders request at least three years of accounts. This is easy enough for many businesses to achieve. If you’re new to trading, however, and only have one year of accounts, getting a mortgage might be more difficult.
However, with a broker that specialises in mortgages for self-employed with one-year accounts, you can achieve a successful application. If you have two years of accounts, please see our specific page for more details.
As a self-employed business owner applying for a mortgage, you will need to prove your earnings. If you have only one year of financial records, you need to demonstrate two things. Firstly, you must prove that your business is viable. Secondly, you must show that your income is stable.
To showcase your stable income, you should provide lenders with information such as future business plans and recent reports. You can also provide them with information on future contracts to show them projected income.
Many high street banks will not provide a mortgage for a self-employed applicant with only one year of accounts. However, there are specialist lenders available that are willing to work with you. With years of experience in self-employed mortgages, they are able to find you the best possible rates.
Finding those lenders and securing a decent mortgage deal is no easy mission. To help you get started you should seek the assistance of an expert mortgage adviser who has experience in this field.
Ever since the financial crisis of 2008/2009, mortgage lenders will no longer accept self-certification to approve a mortgage. Legally, you need to provide proof of earnings to show that you can afford to pay back the loan. This will also show that the lender has made a responsible decision in giving you a mortgage.
For those who are looking to get a mortgage self employed less than 1 year this can be challenging. But not impossible. By enlisting the help of a professional, you can be one step closer to a successful application.
Want more advice on how you can apply for a mortgage with only one year of finances? Speak to one of our professional advisers, today.
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