Self employed persons can often find it more difficult to get mortgages. This can sometimes be difficult to accept as your employment can often be more secure than someone who has just started in an employed role. Nevertheless, lenders do look upon self employed applicants in a totally different way and we are able to help you find a lender more sympathetic to your situation.
Most lenders are not equipped with the expertise to interpret accounts and therefore increasingly prefer to work on SA302s which have to be obtained from HMRC. You will also be asked to get hold of an additional HMRC online document called a Tax Year Overview to verify that the SA302 information is correct. Typically, three years' figures are required although some lenders are prepared to consider just one year's figures in some circumstances.
Sometimes though, your SA302 may not show the income you need to get your mortgage and we may need to identify a lender able to understand accounts and who would consider working on retained profits or calculating the amount they would lend in different ways. Dividends, directors loans and salary can sometimes be taken into consideration. We are familiar with lenders whose underwriters understand accounts and know how to read them.
In some circumstances lenders may even treat you as employed if your job falls into certain categories - this could save you a considerable amount of hassle and perhaps enable you to get better interest rates.