Self Employed with one year of Accounts? You CAN get a mortgage!

There was a time when a self employed person, or small business owner, had to have three years accounts to get a mortgage. But those days are long gone. While most lenders do want two or three years accounts, there are a couple of competitive mortgage lenders, including well known high street banks who will lend based on one years accounts. The fact is, mortgage lending has changed, and this is a great solution for someone who has been self employed for a short while and submitted just one set of accounts – but it is also a great solution for an established business. This is because many businesses have had a hard time over the past couple of years, so if you have a lender willing to lend against the latest set of accounts, you can borrow against that income figure. Therefore, if a business made a marginal profit, or even a loss in the previous years, the lender will be base the amount that can be borrowed on the latest year only. So for a business that has left the hard times behind and is starting to make money again, the owner can get a mortgage.

Not only this, but some of the lenders offering this solution will also ignore any financial hiccups that are over two years old. So if there are a few credit issues from the harder times, but a clean run for two years and a good set of accounts for the latest year, a business owner stands a fighting chance of getting the mortgage they need. Of course, the loan still needs to be affordable, so there is other criteria to meet. However, this is a viable solution which can work, and work well.

The key to obtaining this type of mortgage is to work with a good mortgage broker – easy for us to say, as we are one! But the point is that some of these deals are not available on the high street; and even if they are, it is best practice to get the application submitted right first time and in the best possible light. If the accounts are self-assessment, you’ll need to get a copy of the HMRC SA302 form (we have another blog on how to get this, please take a look), or if you have a reputable accountant with chartered or certified status that may also be sufficient. At Harvey Bowes, we always advise clients in this situation to get a copy of the SA302 as well as accounts – even if you have a highly qualified accountant, as this will limit any delays and additional stress when applying for a mortgage.

There are some really good options available for the self employed and business owners, it is a matter of talking to a mortgage broker who understands lender criteria and what options are really out there. If you are in this situation, and you want to know more about the options available to you, then please talk to a member of the Harvey Bowes team today. We are here to help on: 029 2115 6918. Harvey Bowes is a mortgage broker based in Cardiff and Bournemouth and we are delighted to help no matter how tentative your enquiry might be.

   Think carefully before securing other debts against your home. Your home may be
repossessed if you do not keep up repayments on your mortgage

About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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