Mortgages with 1 year of accounts explained
As a self employed person, you might worry about getting your first mortgage or perhaps you have struggled to secure a mortgage in the past. This can be more of a worry if you’ve only recently become self employed and only have 1 year of accounts.
You will need to prove your self employed income and pass the affordability checks just like employed people. But, because you don’t have an employer to vouch for your salary and length of employment, you have to provide this evidence in a different way. And, often the lenders will ask for more information to prove your income and that you can afford the mortgage.
It depends on which lender you choose as to how they calculate your affordability. Generally, they will take an average from your last two or three years of accounts. But they can take other factors into account as well and it is possible to find specialist lenders who only work off 1 year of accounts.
Don’t worry as it’s not impossible and we have expert knowledge that can help.
We offer advice for mortgages with 1 year of accounts to find out how much you can borrow and which lenders offer solutions for your circumstances. Your Mortgage Expert is based in Salisbury but we can help you no matter where you live in the UK.
What information will I need to provide for a self employed mortgage?
The mortgage lender will want to see evidence that you are able to afford the mortgage you are applying for. To prove your income when you apply for a self-employed mortgage, you will generally need to provide:
- A set of certified accounts – although lenders prefer two or three years of accounts, we know which ones only require 1 year of accounts.
- SA302 forms or a Tax Year Overview which you can get from HMRC. Again this is generally two or three years but can be one year for some lenders
- If you are a Company Director you will need to provide evidence of dividend payments and or retained profits
- Six months’ Bank Statements which they will look through in order to assess affordability based on income and outgoings
In addition to your employment income, the lender will also need to see documents which prove you are who you say you are, live where you say you live and that you have a right to live in the UK.
At Your Mortgage Expert, we can help you package all this documentation and ensure the lenders have all information they need.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Meet the Team
At Your Mortgage Expert we have experience with helping self employed clients and we will work hard to find a mortgage that works for you.
We are not like other Mortgage Brokers. Our small, friendly team wants to achieve a positive outcome for you. In fact, we now have 100 five-star reviews online from people we have helped.
Taking out a mortgage is a huge financial consideration. The last thing we want is for you to take on a financial commitment that you can’t afford. So we will help you understand what your financial outgoings are likely to be and whether your household can afford the additional expense.
Your Mortgage Expert is based in Salisbury but we can help you with Advice for Mortgages with 1 year of Accounts no matter where you live in the UK.
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Email Dan AllenDan Allen - Mortgage Adviser
Dan Allen has worked with mortgages for over 10 years. He takes time to understand different lender criteria. His wealth of knowledge means he will know which lenders will work for you situation. -
Email Dan HarrisDan Harris - Mortgage Adviser
Dan Harris first started working in mortgages in 2004. Dan has great attention to detail and will do the hard work to ensure you get the right recommendation to help with your Property.