Published 16 October 2012 · Last reviewed 17 October 2012 · Older article — see current rates
I need a Mortgage lender who will lend on my last year’s net profit figure
Thought your Accounts were good until you tried to get a self employed mortgage?
The reality is most Accountants will ensure accounts are configured to show the absolute minimum net profit but unfortunately this can be problematic when trying to get a mortgage. Long gone are the days you could self certify your own income and we now rightly have much more stringent rules for people who are self employed.
You would have thought that the answer to the dilemma would be to show a healthy net profit for a year and then return to your tax efficient ways. Well to an extent you would be right but you would also need to Mortgage Broker who has a large panel of lender understands the lending criteria and has direct links to underwriters at some of the largest lenders, at Niche Advice we receive hundreds of enquiries every month and have a great track record on helping self employed clients get a mortgage.
Why? Well in short most of the UK mortgage lenders take an average of the net profit figures over a period of at least two to three years, and well I doubt you want to be that kind to HMRC if it could be avoided!
As you might have come to expect Niche Advice rarely conforms to the norm and can access competitive funding lines that underwrite on the basis of the last year’s net profit figure. This can work wonders for businesses that have produced their best year for a while and also those that are willing to tick the HRMC box for a short period. So why not give us a call and borrow the maximum to achieve a home to be proud of?
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.