Mortgages
Self-employed mortgages
We specialise in helping self-employed mortgage applicants raise funding required and have experience in how lenders assess these applications.
Self-employed mortgages
Genius Mortgage Advice specialises in helping self-employed mortgage applicants raise the mortgage funding required. Our experience of how lenders assess a self-employed mortgage application often proves valuable.
When you apply for a mortgage we will consider you to be self-employed if you have more than a 20% share of the business from which you receive your main income.
You could be a sole trader, a partner or director, or a contractor who has set up a limited company. As a general rule, we’ll need to see proof of your income for the past two complete tax years.
Lending Based on Latest Year’s Accounts
Self-employed professionals often experience fluctuations in income, and lenders sometimes only look at the latest year’s accounts. If you’ve had a standout year and want to borrow more based on your most recent success, we can help you find a lender who understands your needs.
Mortgage for Newly Self-Employed Applicants
Just transitioned from employed to self-employed? You may not have a long track record yet, but we work with lenders who are willing to approve mortgages with just one year of accounts. Don’t let your short self-employed history stop you from buying your dream home.
Lending Based on Net Profit for Ltd Company Directors
If you’re a Ltd Company Director, your borrowing potential may be higher than you think. Instead of basing your mortgage on salary plus dividends, some lenders look at your net profit. This higher figure could allow you to borrow more and get the property you’ve always wanted.
Frequently Asked Questions
Can I borrow more if I’m a Ltd Company Director?
Yes, if you are a Ltd Company Director, some lenders will assess your mortgage affordability based on the company’s net profit rather than just your salary and dividends. This can be particularly beneficial if your company is profitable but you choose to keep your salary low to minimize taxes. Lenders who use this method may allow you to borrow more because they consider the overall financial health of your business.
It’s important to note that different lenders have different criteria, so working with a mortgage adviser who specializes in self-employed mortgages can help you find a lender that offers the best terms for your situation.
Can I get a mortgage with only one year of accounts?
Yes, it is possible to get a mortgage with just one year of accounts. Some lenders specialize in working with self-employed applicants who may not have the traditional two or three years of financial history. These lenders understand that self-employed individuals may have fluctuations in income, and they assess applications based on the latest year of accounts.
However, you’ll typically need to show that your income is stable or growing. We work closely with lenders who have experience in this area and can guide you through the process to find the best solution for your situation.
What happens if I do not intend to move immediately?
The majority of house moves involve a simultaneous sale and purchase transaction, such that you sell your existing property and buy the new one on the same day.
Some house moves are non-simultaneous, before you commit to this and if you intend to ‘port’ your mortgage as mentioned above, you need to check what the ‘porting’ rules are for your current mortgage lender to ensure that a non-simultaneous house move does not breach mortgage ‘porting’ rules.
Is it harder to get a mortgage if I’m self-employed?
Getting a mortgage as a self-employed individual can be more complex, but it’s not necessarily harder if you have the right documentation and preparation. Lenders usually require more proof of income, such as multiple years of accounts and tax returns, because self-employed earnings are seen as less predictable compared to those on a regular salary. However, there are many lenders that specialize in self-employed applicants and are familiar with fluctuating incomes. Working with a mortgage adviser who understands the self-employed market can help you navigate these requirements and find the right lender. As long as your business is profitable and your accounts are in order, getting a mortgage shouldn’t be too difficult.
Your home may be repossessed if you do not keep up repayments on your mortgage
Genius Mortgage Advice
Why choose us?
We take the time to understand your requirements, find a way forward whatever the circumstances, and then stay the course until your mortgage is offered, and the transaction has completed.
We want to develop relationships with borrowers that last as long as your mortgage term, and are as wide as to include family and friends.