1 Years Accounts Mortgage
Like many of the people that enquire with us, you might be reading this because you’ve been either refused a mortgage for not having enough trading history or you’re thinking of applying but aren’t sure what a lender will ask for. Either way, it’s true that obtaining a mortgage with less than 2 years of accounts can be very tricky.
However, there are increasing numbers of lenders who will consider you with one year’s accounts. This is where working with a company such as us, which will source the very best offers from all the lenders out there for you, works to your advantage.
How much can I borrow?
People who are self-employed and have 1 year of accounts are able to borrow pretty much the same as other applicants which is usually up to 4.5x their income. However, if you are earning a larger income, then this may be extended in cases where affordability can be proven.
Will my business type affect my borrowing power?
The nature of your business will likely not affect your ability to get a mortgage. Lenders will be interested in the profitability of your business and make their judgement based on this. As long as you can prove that your business has made money in its first year and that the income continues to be sustainable, you may not be seen as a risky investment for the lender.
Going from employed to self-employed within the same sector
A lender may be interested in your personal history in the industry you work in, so were you in a similar role in an employed capacity, before going self-employed? Perhaps you were contracting and now have started a business on your own. Even if you don’t have more than a year’s worth of experience, we still have lenders available.