We have a lot of self-employed people that speak with us and they think that they are unlikely to be able to obtain a mortgage. The truth is that lenders are very much aware of the particular situation for self-employed people. But they do have a process to work out how much they will be prepared to lend you. It doesn’t matter if you are a sole trader, a partner or a company director, there is a process for you. If you are a sole trader or a partner the criteria will focus on the individual’s net profits while for company directors it focuses on the salary and paid dividends. Lenders will vary in the amount of time it is expected an applicant to provide evidence of income. Most will look at the income received over the last two or three tax years and either average it out or take the most recent year as a basis for calculation. However, if you have a good profile, some lenders will make it possible to get a loan with just one year’s set of accounts (completed tax return).
If you are interested in any of our Mortgage services please get in contact with us and we can discuss your unique circumstances.