If you are self-employed with at least 1 year’s worth of accounts or HMRC tax returns, there are mortgage lenders that will accept this with no minimum trading period.
Self-Employed Trend 📈
Recent CIPD research suggests that as many as 1 in 7 UK workers are now self-employed or have become ‘selfies’, adding that self-employed workers now make up almost 15% of the UK labour force (Feb 1st, 2018).
With that in mind, lenders are becoming increasingly aware that they will need to do more to help assist entrepreneurs who may not conform to the existing stereotypical model of self-employment.
How Mortgage Lenders Assess Self-Employed
Standard mortgage lender criteria has always been to request a minimum of 2 or 3 years accounts and then to average the income over the trading period.
This model is old and not representative of the modern self-employed applicant, but thankfully some lenders are starting to realise this.
More and more mortgage lenders are waking up to the fact that this old and tired self-employed underwriting assessment model needs tweaking to move forward with the times.
Recently, Newcastle Building Society unveiled its latest self-employed mortgage where it focuses on a new mortgage product for those applicants who are recently self-employed. The lender also announced that they will now apply an individual case-by-case assessment for all self-employed applicants moving forward.
Lenders that accept 1-year accounts or your latest HMRC tax returns
In addition to Newcastle BS, there are many other lenders who are able to accept either one year’s business accounts, completed/submitted returns (SA302’s), or a completed accountant’s certificate:
- Aldermore Bank
- Cambridge Building Society
- Kent Reliance
- Precise Mortgages
- Vida Homeloans
All of the above lenders can consider self-employed applicants who have been trading for at least 12 months (subject to further eligibility assessment).
We can help identify the most suitable lender to meet your self-employed circumstances and process your mortgage for free.
We work closely with the lender business development managers to present your self-employed case in the best possible light, no matter how unique your circumstances are and we do not charge any broker fees.
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Author: Ben, Glow Mortgage Advisor (CeMAP, BSc Hons)
Date Published: 9th February 2018.