Your Guide to Getting a Self-Employed Mortgage with 2 Years of Accounts
Why Is It Harder to Get a Mortgage When You’re Self-Employed?
Being self-employed has its perks—flexibility, control, and independence. But when it comes to getting a mortgage, things can feel a bit more complicated. Unlike those with a steady paycheck, self-employed borrowers need to prove their income in a way that satisfies lenders. But don’t worry, it’s completely possible to get a mortgage with two years of accounts, and we’re here to walk you through it.
FAQs: Self-Employed Mortgage Challenges
- Can I get a mortgage if I’m self-employed? Yes! Having two years of accounts can improve your chances.
- Do I need to earn a specific amount? Lenders assess affordability, so income consistency is key.
- Will lenders accept my business profits? Some lenders consider net profits or dividends, depending on your setup.
What Do Lenders Look for in Self-Employed Mortgage Applications?
Lenders want to know that you can afford your mortgage payments, and for self-employed applicants, that means providing extra documentation like:
- Tax returns
- Business accounts
- Bank statements
If you’ve got at least two years of accounts, you’re in a strong position. But even if you’ve only been self-employed for a year, there are still specialist lenders who may be able to help.
FAQs: Lender Requirements
- What do mortgage lenders look for in self-employed applicants? Stable income, affordability, and good credit history.
- Do I need an accountant? Some lenders require accounts prepared by a certified accountant.
- Can I use retained profits for affordability? Some lenders will allow this, but it varies.
How Can You Boost Your Chances of Getting Approved?
If you want to make your mortgage application as strong as possible, here’s what you need to do:
- Keep Your Financial Records in Check – Lenders will look at your tax returns, business accounts, and bank statements, so make sure everything is up-to-date and accurate.
- Think Twice About Tax Deductions – We get it—you want to reduce your tax bill. But claiming too many deductions can lower your declared income, which might make it harder to get the mortgage you want.
- Build Your Credit Score – Your personal credit history plays a big role in your mortgage application. Pay your bills on time, reduce outstanding debts, and keep an eye on your credit score.
- Work with a Specialist Broker – Some lenders are more flexible with self-employed applicants, and a mortgage broker (like us at Mortgage Bridge!) can help find the best deal for you.
FAQs: Boosting Mortgage Approval Chances
- How can I improve my credit score for a mortgage? Pay bills on time, reduce debt, and avoid late payments.
- Should I increase my deposit amount? A larger deposit can improve mortgage terms and approval chances.
- Can I get a mortgage with only one year of self-employment? Some specialist lenders may consider this.
What Mortgage Options Are Available for the Self-Employed?
If you’ve got two years of accounts, you’ve got options. Here’s what’s out there:
- Traditional Mortgages – If you meet the income criteria, you may be able to get a standard mortgage from a high-street lender.
- Specialist Lenders – These lenders cater to self-employed borrowers and consider more than just your tax returns when assessing affordability.
- Mortgages with 1 Year of Accounts – Some lenders will consider you even if you only have one year of accounts, though interest rates may be a little higher.
FAQs: Self-Employed Mortgage Types
- What’s the difference between a traditional and specialist mortgage? Traditional mortgages have stricter criteria, while specialist lenders offer more flexibility.
- Are interest rates higher for self-employed mortgages? It depends on your credit score and financial history.
- Can freelancers and contractors get a mortgage? Yes, many lenders accommodate different types of self-employment.
How Can Mortgage Bridge Help?
At Mortgage Bridge, we specialise in helping self-employed individuals get the mortgages they need. We understand that proving your income can be tricky, but we know the lenders who are willing to work with you. Whether you’re a freelancer, contractor, or business owner, we’ll help you find the best mortgage deal.
FAQs: Mortgage Bridge Services
- How can Mortgage Bridge help me as a self-employed borrower? We match you with lenders who understand self-employed finances.
- Do you offer mortgages for bad credit self-employed applicants? Yes, we have access to lenders who specialise in this area.
- Can I get a free consultation? Absolutely! Get in touch and we’ll discuss your options.
Can You Get a Mortgage with 2 Years of Self-Employed Accounts?
Absolutely! It’s all about preparing your documents, keeping your finances in good shape, and working with the right lender. Yes, it might take a little more effort than if you were employed, but with the right approach—and a bit of help from Mortgage Bridge—you can make it happen.
If you’re ready to explore your mortgage options, get in touch with Mortgage Bridge today. Let’s find the right mortgage for you!