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Self Employed Mortgages

If you are self employed, then it may be harder to get a mortgage as you will need to prove you have a reliable income. For this reason you need to find a mortgage broker who specialises in helping people with self employed mortgages.
Usually lenders will look for at least two years or more of accounts, evidence of dividend payments and retained profits, proof of upcoming contracts and all of the usual checks that come with applying for a mortgage.
We can guide you through every step of the process. Contact us today or book an appointment online.

Can I Get A Mortgage If I Only Have One Years Accounts?

Yes, although only a limited number of lenders are happy to do this and you normally have to pay a higher rate.

Contact us today or book an appointment online

Will Lenders Work Off Current Projections?

No, they may ask for them to check your business is in good shape but they normally work off figures from your full, filed accounts.

I Have Changed From A Sole Trader To A Limited Company, Will That Affect My Chance Of Getting A Mortgage?

That normally won’t be a problem. As long as you ownership share stays the same or improves and you are working in the same industry/area, lenders normally don’t mind.
Self employed mature woman

I’m A CIS Contractor, Will Lenders Lend To Me?

Yes, most lenders are happy to lend based on the average of payments received over a specified period. This period varies from lender to lender but often this is 6 months.

I’m A Day Rate Contractor, Can I Get A Mortgage?

Yes, most lenders will work off the gross income from your daily hourly rate multiplied by 5 (days) and again by 48 (weeks). This allows for some gaps. Typically they expect you to have been doing this for 12 months and to have no more than 3 months total gaps between contracts during that period.

Will Lenders Accept Tax Returns Instead Of Accounts?

Yes, normally they want to see 2 years worth. Sometimes people refer to these as an SA302 form but in reality they tend to mean the tax calculation form as that follows the same layout as the old SA302 form which HMRC used to send to people. In order to check it is accurate, lenders normally ask for the corresponding tax year overview to show the tax paid/owed to HMRC matches the figure on the tax calculation. You can get these from your accountant or from Gov.UK.

How Long Are My Tax Calculations/SA302’s Valid Until?

Normally lenders will accept them up until the beginning of the following October. So for example, you could submit your tax return for the 2019/20 tax year (ending in April 2020) up to Jan 2021 and the lender would accept this to show proof of self employed earnings up until October 2021. That’s 18 months after the tax year the return related to.

If I Am Employed By My Own Company, Am I An Employee And Can You Just Use Payslips To Assess How Much I Can Borrow?

Whilst that’s technically correct, most lenders will still classify you as being self employed if you have a 20% shareholding or greater in the business and will ask for accounts or tax returns and will often work off of net profit. Some lenders will work off of salary and dividends received when assessing mortgage affordability as long as the business is making enough profit to pay these.

Will A Lender Ever Ask For Anything Else?

Yes, sometimes they will ask for business bank statements, full accounts including P&L accounts or even a reference or projections from your accountant to show how the business is doing.

Contact us today or book an appointment online

Contact us today for any questions and a free initial consultation or book
an appointment online. We can help to guide you through every aspect of self employed mortgages.

Your Data

Financial Web Ltd Trading As Clifton Mortgages will be what is known as the ‘controller’ of the personal data you provide to us. We only collect basic personal data about you which does not include any special types of information or location-based information.

Why do you need my data and what will it be used for?

We need to know your basic personal data so we can make contact with you and respond to your message, request or query. All the personal data we process is processed by our staff in the UK.

Who is my data shared with?

Your data will only be shared with third parties if this is necessary to respond to your request. If this is the case, we will seek your permission before passing on your details.

How long do you keep my data for?

We may store your data for up to six years past the end of any business relationship, after which time it will be securely destroyed. If you would no longer like us to process your data at any time, you have the right to object to processing of your data. To do this, please contact [email protected]

What are my rights?

You have the right to object to the processing of your data. You also have the right to request access to your data at any time. You have the right to rectification and/or erasure of personal data or restriction of processing. If you wish to raise a concern related to how we have handled your personal data, you can contact us to have the matter investigated at [email protected]. If you are not satisfied with our response or believe we are processing your personal data not in accordance with the law, you can complain to the information commissioner’s office: https://ico.org.uk