Self Employed 1 Years Accounts Mortgage
So how does getting a Self Employed 1 Years Accounts Mortgage really work. Being self employed is as popular as ever but can be problematic for Mortgage Lenders to justify sustainable income to service their mortgages when the trading period of the company is short like just 1 year. The good news is there are now growing band of Mortgage Lenders including high street banks and building societies that will consider Self Employed 1 Years Account Mortgage
There are two ways to evidence the income:
- HMRC Tax Calculation SA302. This is based on your personal tax period 6th April to 5th Which depending on when you started trading might not show the full picture.
- Compiled by a suitably qualified accountant i.e. chartered or certified. This will run to your trading date.
The Mortgage Lender may also ask for a projection for the coming year.
In theory we can obtain up to 95% mortgage i.e. 5% deposit but the greater the degree of deposit the more pleased the Mortgage Lender will be.
Mortgages can be obtained for as short as 10 months but it this case the turnover and profit must be significant in relation to the borrowing required. Likewise, sole traders (or partnerships) changing their status into limited companies can also have short trading records.
Company directors who hold a significant shareholding i.e. over 20% in the company will be treated like self applicants for a mortgage.
Niche Advice can provide suitable advice for clients looking to take out a Self Employed 1 Years Account Mortgage. Please complete our online enquiry form under the Contact tab on this website or call T: 020 7993 2044 so we can evaluate your mortgage options.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Mortgage Brokers. His role is very much focused on Property financing both on residential and commercial lines.