If you are looking for a mortgage with 1 years accounts, Mortgage Success can help.
Many newly self employed people think there is no point even applying for a mortgage with less than three, certainly two year accounts but whilst it may not be the norm we have experience of packaging the mortgage application and approaching lenders who are receptive, especially if otherwise the application is strong.
Earlier this year we received a call from an applicant who is self employed. He had had a large increase in in his income as his income had almost doubled in the space of a year!
He was looking to purchase a property which would have required the use of his increased income. We discussed whether this large jump was expected to remain or whether it was a jump for the year and he explained how the increase had come about and was clear that the income increase wasn’t a one off but was reflective of his business progressing and that it was expected to remain.
How can we help?
Most Mortgage lenders will look to average out the last 2-3 years income figures when assessing income.
However, there are some specialist lenders who will work off the latest years figures when assessing affordability, so in general you have the choice of lower rates but a lower lending capacity or higher rates and a larger mortgage.
That being said however, there are Mortgage lenders out there who will take a manual approach to underwriting and one of the things we can do is to talk to you about your business and get a better understanding of it.
Therefore, getting a mortgage with 1 years accounts isnt as impossible as many would have thought, given you have the right broker behind you.
Once we understand your business and your income, we can then consider whether there is a possibility of getting you normal rates using just 1 years accounts for a new business or your latest years accounts for a business which has been trading a while.
Mortgage with 1 years accounts success story
In the example above, we did manage to obtain a Mortgage at normal rates for the customer using just his latest years income despite there being such a large increase. We sat down with the customer to understand why their income increased by so much and how they knew it was not just a one off jump but this large increase was the new normal for their business.
We then put an explanation across to our account manager to get an indication as to whether it would be accepted before submitting the full application. Within 2 weeks we had a Mortgage offered at 90% LTV at normal rates using just their latest years income.
Can I get a Mortgage with 1 years accounts?
Get in touch. Lets have a chat, more often than not we can obtain a Mortgage using just one years figures or your latest years figures, that is something we help with on a daily basis, the complex part is trying to get that but at normal rates rather than the with specialist lenders which may be at a rate of around 1% above the high street.