Self Employed Mortgage With One Years Accounts
For self employed people with only one full years accounts
Self-Employed people may worry that they will find it more difficult to get a mortgage. That might have been the case some years ago, but today most providers will lend to the Self-Employed. Often lenders will request two years’ worth of accounts – but if you haven’t been in business that long, Henden Financial Limited could help.
Why Choose Us?
There are many considerations when choosing someone to help you with your mortgage. Getting it right could save you thousands. During our initial consultation we will go through the process together and assess your needs. We offer a comprehensive range of products from across the market, which means we aren't limited to a smaller selection of products and can choose from thousands of available lenders.
20 Years Experience
Our wealth of experience across the industry means our knowledgeable advisors can give you advice you can trust.
No Offer, No Fee
We are so confident that we will find you the right mortgage, that we only ever charge when you receive a full agreement in principal. For most people this takes them forward to a successful home move.
Comprehensive Market Access
You won't be missing out on any great deals. We can access all of the mortgage products which are currently available and know how to find you the most suitable deal.
Self Employed but only one years accounts
FAQ
Could I get a mortgage if I’ve only been Self-Employed for one year?
The reason that a lender wants to see company accounts is to get a sense of your income. Your earnings are the basis for the loan amount they will offer. A Self-Employed person’s income is less predictable than that of someone on a salary, so the lender wants evidence of your annual earnings, ideally over two to three years. That said, some specialist lenders will accept just one years’ accounts, and some will even take 9-10 months’ business records – as long as your business is doing well.
How do I prove my income with only one years’ accounts?
You prove your income by sharing documents, ideally a set of accounts certified by a qualified accountant. You may also need to supply your self-assessment (SA302) for the last tax year, stating your annual earnings. As with any borrowing, lenders will also look at your credit score. Small scale debts or late payments aren’t usually a problem, but if you have particularly bad credit such as CCJs or bankruptcy you will have a very narrow choice of lenders and high interest rates.
How does it work for a Sole Trader, a partnership or if I have a Limited Company?
Sole traders: Lenders will see your business profits as your income, so they will often request self assessment records to confirm your income. Partnerships: You will be assessed on your share of the partnership’s profits. Either company accounts or tax details are usually needed. Limited company: The mortgage provider will usually look at your final accounts for the year. Your loan amount is usually based on your stated salary and dividends – but some lenders will use your net profit, which usually means you could borrow more.
How much could I borrow?
Mortgage lenders will usually let you borrow around four to five times your income. This is the same for everyone, regardless of their employment status.
Put your stated annual income into a mortgage calculator to see how much this might be and what the monthly repayments will cost.
The lack of sick pay makes self-employment more risky than a traditional employed job, so you might want to consider insurance to ensure you can meet all repayments on your mortgage. Income protection pays your bills if you can’t work due to illness or injury.
What deposit will I need?
The absolute minimum for a deposit is 5% of the property value, but you need good credit for this level of borrowing and rates will be high.
If you can save up 15% or more you will get better rates and a wider choice of lenders. The size of your monthly repayments will fall as the deposit increases. Again a mortgage calculator – or an expert broker – could show you how different deposit amounts will impact your monthly payments.
How could a mortgage broker help?
Here at Henden Financial Limited, we’ve helped many Self-Employed people achieve their property plans.
As professional mortgage brokers, we compare hundreds of mortgage deals on your behalf, across high street lenders and more specialist companies.
Our mortgage advice will help you find an affordable loan with just one years’ accounts.
We even take charge of mortgage applications to make the process stress-free. If you need a specialist product we could help.
We are specialist mortgage brokers who are authorised and regulated by the Financial Conduct Authority. Contact us today for help to obtain a mortgage that works for you.