This is a question I often get asked.
Whether you’re a sole trader, limited company business owner or contractor, my personal belief is that you want to have at least two years accounts.
If you have less than two years it could be possible to get a mortgage.
However, you’re going to be fitting a minority of mortgage lenders, which could see you having higher interests rates and it could reduce the amount that you can borrow.
Click the video below or read the blog to find out more:
A question I often get asked is how many years accounts do I need to get a self-employed mortgage?
Now, whether you’re a sole trader, limited company business owner or contractor, my personal belief is that you want to have at least two years accounts. If you have less than two years it could be possible to get a mortgage. However, you’re going to be fitting a minority of mortgage lenders, which could see you having higher interests rates and it could reduce the amount that you can borrow.
So to potentially set yourself up for a higher chance of success, because you have more available to you, potentially to lower the number of fees that you’re going to have to pay to get a more suitable mortgage and potentially a lower interest rate, having at least two years accounts would be my personal recommendation. Also, what you’re going to find when you do have two years accounts is that the majority of high street lenders want to average your earnings over the last two years.
Now I would like to tell you from my personal experience back in 2015 there are a select number of lenders that will consider or could consider your latest year only providing there is a good reason and the income is going to be sustainable for the future. And what that could do for you is if you have more income in this latest year, it could increase the amount that you can borrow.
So I hope that helps. Personally, wait until you have two years accounts to think about getting a mortgage and if you would like to set yourself up for success, then you can go and get a copy of my book, The Self Employed Mortgage Guide on Amazon. Or attentively you can pick up the phone or email the team and we’ll be more than happy to assist.
Thank you very much.
Here is What to do Next:
If you liked this blog we think you will love this one we did on Can I Get A Self-Employed Mortgage With 1 Years Accounts?
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If you’re looking to go a step further, you can go and download your FREE copy of – 7 MISTAKES BUSINESS OWNERS AND ENTREPRENEURS MAKE THAT COULD JEOPARDISE YOUR MORTGAGE
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