For the self employed to get a mortgage, three years’ audited accounts are usually required. But even if the applicant had such records, their accountant would have usually minimised their income on paper for tax purposes. Fortunately, there are a handful of specialist mortgage lenders that realise there is a growing number of self-employed borrowers who have different needs to those who can rely on a regular income.
A new generation of specialist lenders have come up with products aimed at filling the void left by the elimination of self cert. These lenders appreciate the specific nature of those who work for themselves and acknowledge self employed borrowers are a very different proposition to those in full time employment. As a self employed borrower you can be more positive about your chances of getting a mortgage compared to a few years back as in recent times the range of mortgages available to you has improved. There is a selection of fixed rate, discount, tracker mortgages and even flexible deals available although these products are almost entirely only accessible by approaching an FCA authorised mortgage broker or advisor.
Some of the specialist mortgage lenders operate solely through brokers and as a consequence you will only get access to these products via an intermediary. These products are not available by visiting a high street bank or building society as most of the specialist lenders do not operate a high street presence. Their business model is to make their mortgage products available through indepedent advisors or brokers as they trust the advisors to accurately examine the individuals circumstances and advise appropriate products accordingly.
There are a number of mortgage brokers who focus on providing mortgage advice to self employed people and they tend to have good connections with self employed friendly lenders. Your best bet is to approach one of these, for instance ABC Mortgages who suggest they are able to assist those new to the self employment arena, company directors and contract workers. Some lenders will make an assessment based on only 1 years' accounts which can be attractive to those unable to get a mortgage via a high street bank because of their demand to see 3 years accounts.
Typically, a broker will offer their initial advice for free and this often involves recommending the best deals. If you decide to proceed, most will charge you a fee and this will de disclosed to you at the time.
Your home may be repossessed if you do not keep up repayments on your mortgage
A FEE MAY BE PAYABLE TO THE BROKER FOR MORTGAGE ADVICE IF YOU PROCEED WITH AN APPLICATION, OF UP TO 1% OF THE LOAN AMOUNT. THE BROKER WILL PROVIDE YOU WITH DETAILS BEFORE YOU ARE ASKED TO COMMIT.