SELF-EMPLOYED MORTGAGE 2 YEARS ACCOUNTS

Obtaining a mortgage when you are self-employed can be more challenging; nonetheless, there are now more options than was previously the case. The procedure has intricacies due to the requirement to provide evidence demonstrating a consistency of earnings and the capability of fulfilling the repayments needed monthly. It may seem challenging, yet all is not lost! The expert team at ams: specialises in supporting self-employed professionals to be given mortgage offers that meet their unique circumstances. For further details also visit our self-employed mortgages offering.

Yes, but it is important to note mortgage lenders will follow their own criteria and standards, so not all of them may accept your application. Fortunately, we have access to a range of premium-quality lenders, which are likely to view an application for a mortgage with 2 years of accounts more favourably and give the green light to your two years self-employed mortgage application.

This naturally varies from lender to lender. Mortgage lenders tend to ask for evidence of earnings from self-employment work for at least 2-3 years. Nevertheless, certain lenders might be amenable to giving out a loan with only one year of evidence. Our team has access to a selection of more accommodating lenders, where two years of accounts at the required earnings level is highly likely to lead to a mortgage offer.

To increase your prospects of obtaining a mortgage, it is advisable to apply with a deposit of 5-10%. Moreover, you should bear in mind that credit scores will also be considered and also the amount of the mortgage loan being advanced.

If you are self-employed and applying for a mortgage, you must be able to demonstrate your income. To assist you in this process, our blog article “demonstrating earnings from self-employment” is a worthwhile read.

Some ways to evidence earnings for your self-employed mortgage with 2 years accounts application are:

• Supply of your annual approved financial statements and accounts
• Obtaining a testimonial, vouching for your income, completed by your accountant
• Submission of an SA302 form (which also includes the supply of your tax returns)
• Two (or more) years of business bank statements
• Additionally, lenders may value and consider evidence of future earnings, such as contracts, invoices, and purchase orders

If there are gaps or seasonality in your two years earnings when applying for a mortgage with 2 years of accounts, it can make it more difficult to qualify for the loan. Lenders look for a steady income over time to demonstrate the ability to repay the loan. However, lenders may consider other factors such as your overall creditworthiness and your ability to provide documentation that explains the gaps or seasonality in your earnings. Again, here at ams: we have access to mortgage providers with a more flexible approach, that takes income seasonality, bonuses (e.g., quarterly, bi-annually, or annually) and gaps in income as part of an overall picture.