Self-Employed Mortgages with 1-year Accounts
Whenever you are thinking of getting a mortgage, you need to take your personal situation into consideration as best as you can. One of the most important parts of this is considering your employment status, as that is always going to have a profound effect on the mortgages you can secure.
If you are self employed with at least one year’s worth of accounts, you can still get a mortgage, though you do need to be aware of some of the differences that can arise here. In this article, we are going to take a look at what this situation looks like, and how it might differ from getting a mortgage in other financial positions. The more you know, the better equipped you are.
Self Employed Mortgages
For many, it is surprising to learn that it’s easy to get a mortgage as a self employed individual. But it’s true. If you are a freelancer, sole trader, company director, contractor, and so on, you can still get hold of the mortgage you need, to ensure that you are going to be able to buy the property you are looking for.
However, the process does differ in some ways. For instance, it becomes trickier than a normal mortgage especially after self-certification ended, as they are no longer based on your declared earnings. Now, you have to show real proof of income, so that there is a clear indication of how likely you are to be able to repay what you borrow.
A lot of lenders require that you have at least three years’ worth of income to show. But if you have only been trading for a year, don’t worry – you can still get hold of a mortgage.
Arranging A Self Employed Mortgage
In many ways, the process of arranging a self employed mortgage is much the same as arranging a normal mortgage. You need to find a broker, first of all. Without a broker, you are not going to have access to the same level or amount of mortgages, so you are much less likely to get one that really works for you.
We aim to make the whole process a lot easier, and help you every step of the way. Once you have a good broker, you need to collate all of the necessary evidence of income and outgoings, and apply for the mortgage that seems best for you.
How Does A Self Employed Mortgage Work?
As we have said, in some cases you only need to have been trading for a year to claim a mortgage. As long as you have one year’s worth of accounts to show, you should be able to borrow some money for property. You will generally need to have completed a tax return for at least a year, but in some cases this can be waived.
It doesn’t really matter which sector you work in, as long as you are self-employed with one year of accounts under your belt. Lenders don’t mind what you do, but rather look into what you earn.
If you have only been self employed for a year, this should not make too much of a difference to how much you are likely to borrow. A self employed mortgage with one year accounts is pretty much the same as normal borrowing rates: you can typically get up to five times your income. If you earn a higher wage, you might be able to stretch this further.
If you have bad credit and you are wondering whether you can get a self employed mortgage with one year accounts, the answer is often yes. Many lenders do consider bad credit , but you will need to look out for them specifically. You can also remortgage in this situation, so if that is what you are looking to do, you can still get help for that as a self employed individual in one years of accounts under your belt.
As you can see, it is pretty straightforward to get a self employed mortgage with one year accounts, but the process will be made easier with a mortgage broker. If you are looking for a trustworthy mortgage broker get in touch today to find out more about our services, and see whether we might be able to help you out.
Your home may be repossessed if you do not keep up repayments on your mortgage.