Are You Self Employed And Struggling To Get A Mortgage?
If the answer is ‘yes’ then we may have some good news for you.
Traditionally, mortgage lenders only consider self-employed applicants who have been trading for at least three years.
This is because lenders need to satisfy themselves that the risk to them is in part minimalised and a three year track record can provide some evidence of this.
Naturally, many businesses will go through cycles of good and bad years and there are no guarantees of future profitability.
At Buckingham James we may be able to help even If you’ve only been trading for one year.
Many, if not most lenders will insist that self-employed business owners produce accounts for 3 years. However, we have identified a selection of non-high street lenders who are willing to grant mortgages to those who have been self-employed for 1 or 2 years.
How Much Can I Borrow?
Typically, that is determined by the projections of income your accountant is willing to make coupled with the lenders discretion. Income multiples will vary but in some cases you may get offered as much 4 to 5 times income as defined by a combination of protections, actual income earned and length of time trading.
In certain circumstances an agreement in principle may be made with only 9 or 10 month trading if the overall proposition satisfies all the other checks and balances the lender applies during the underwriting process.
Self-employed borrowers may even be able to secure a mortgage deal with bad credit and only 1 year’s accounts!
A mentioned above, these lenders are not typically found on the high street and this is where choosing the mortgage experts – Buckingham James can make all the difference!