Mortgage - Self-employed

Flutterbye22 · 2023-08-29T16:08:07+00:00

Does anyone know if there are any mortgages available to the self-employed who have only one years worth of accounts? (Proof of earnings for a year). I know they usually like two years. Just wondered. Thanks!

PlantDoctor · 29/08/2023 17:15

You could contact a mortgage broker. I don't know the answer, but I've only ever been told 2 years. If you had contracts and proof of future income it could potentially be possible?

HollyBollyBooBoo · 29/08/2023 17:24

If it helps my best mate has just been through a mortgage broker and has been told he needs to wait another year until he has 2 years on the books. He literally couldn't get a mortgage now.

Original poster

Flutterbye22 · 29/08/2023 20:31

HollyBollyBooBoo · 29/08/2023 17:24

If it helps my best mate has just been through a mortgage broker and has been told he needs to wait another year until he has 2 years on the books. He literally couldn't get a mortgage now.

Ahh ok that’s useful to know. Thanks for letting me know.

OP posts:

BrightLightTonight · 29/08/2023 21:20

You need a specialist mortgage broker. The high street brokers will not be able to help. When I only had one years accounts, the high street broker could only get me a £150k mortgage, the specialist broker got me £350k, which was what I needed.

ProudparentofaMuffin · 29/08/2023 21:23

We have just got a mortgage in one years accounts with the Halifax through a broker. Our accountant did have to give a "forecast" of projected income as well as the usual accounts.

CPHB2021 · 29/08/2023 22:24

We have been told we need minimum one year. Less lenders available but it's definitely possible!

Tilly1926 · 29/08/2023 22:38

Hi OP,

Im a mortgage adviser and you definitely can get a mortgage with one years’ accounts. You might need to provide more information about what you were doing previously or a projection for your next years income but it’s definitely possible. I hope that helps and let me know if I can help at all x

Original poster

Flutterbye22 · 30/08/2023 03:28

Tilly1926 · 29/08/2023 22:38

Hi OP,

Im a mortgage adviser and you definitely can get a mortgage with one years’ accounts. You might need to provide more information about what you were doing previously or a projection for your next years income but it’s definitely possible. I hope that helps and let me know if I can help at all x

Hi :-)

thank you very much - that’s really helpful. are you more limited on products available if only able to provide one years’ worth of accounts / projections?

OP posts:

Original poster

Flutterbye22 · 30/08/2023 03:28

CPHB2021 · 29/08/2023 22:24

We have been told we need minimum one year. Less lenders available but it's definitely possible!

That’s great to know, thanks!

OP posts:

Original poster

Flutterbye22 · 30/08/2023 03:28

BrightLightTonight · 29/08/2023 21:20

You need a specialist mortgage broker. The high street brokers will not be able to help. When I only had one years accounts, the high street broker could only get me a £150k mortgage, the specialist broker got me £350k, which was what I needed.

Are you able to recommend a specialist broker?

OP posts:

BrightLightTonight · 30/08/2023 07:08

Flutterbye22 · 30/08/2023 03:28

Are you able to recommend a specialist broker?

Show quote history

I used a company called “Contractor Mortgages Made Easy”. (CMME)

https://www.cmmemortgages.com/

Contractor Mortgages | CMME Mortgages and Protection

Specialist Contractor Mortgage Broker. Tailored By Expert Advisors, Borrow Based on your Day Rate or Contract

https://www.cmmemortgages.com/

Original poster

Flutterbye22 · 30/08/2023 07:12

Thanks so much!

OP posts:

Tilly1926 · 30/08/2023 09:54

Flutterbye22 · 30/08/2023 03:28

Hi :-)

thank you very much - that’s really helpful. are you more limited on products available if only able to provide one years’ worth of accounts / projections?

Show quote history

Hi OP,

So lenders like Halifax or Kensington who will take one years accounts would allow you to take any of their products so you would still be able to get a choice of long or short term fixed rates/trackers etc.

If you have previously been employed in the same line of work that you are now self employed in then there are other lenders who may look at your track record as well particularly if your earnings are similar.

I have done lots of mortgages for similar clients so feel free to DM me if you want to chat it through and I'd be happy to help

CPHB2021 · 30/08/2023 09:56

@Tilly1926 could I be cheeky and ask you as a broker if you can get a mortgage on a piece of land? And whether there are any rules on that.... DH is self employed and we're waiting at the moment for the first years accounts before we look to get a mortgage. We've just sold our house and staying with family in the interim but dream is to buy a plot and build a house!

felisha54 · 30/08/2023 10:00

I got a mortgage several years ago through Halifax with one years accounts.

Original poster

Flutterbye22 · 30/08/2023 10:10

Tilly1926 · 30/08/2023 09:54

Hi OP,

So lenders like Halifax or Kensington who will take one years accounts would allow you to take any of their products so you would still be able to get a choice of long or short term fixed rates/trackers etc.

If you have previously been employed in the same line of work that you are now self employed in then there are other lenders who may look at your track record as well particularly if your earnings are similar.

I have done lots of mortgages for similar clients so feel free to DM me if you want to chat it through and I'd be happy to help

Show quote history

Thank you very much, really really helpful. I’ll DM you for more info if that’s ok!

OP posts:

Original poster

Flutterbye22 · 30/08/2023 10:10

CPHB2021 · 30/08/2023 09:56

@Tilly1926 could I be cheeky and ask you as a broker if you can get a mortgage on a piece of land? And whether there are any rules on that.... DH is self employed and we're waiting at the moment for the first years accounts before we look to get a mortgage. We've just sold our house and staying with family in the interim but dream is to buy a plot and build a house!

That does sound dreamy!

OP posts:

Tilly1926 · 30/08/2023 10:17

CPHB2021 · 30/08/2023 09:56

@Tilly1926 could I be cheeky and ask you as a broker if you can get a mortgage on a piece of land? And whether there are any rules on that.... DH is self employed and we're waiting at the moment for the first years accounts before we look to get a mortgage. We've just sold our house and staying with family in the interim but dream is to buy a plot and build a house!

Hiya,

In theory you can. It would be a development mortgage and normally the money would be released in stages as the build progresses. Its a more specialist type of mortgage so I would definitely recommend speaking to a broker who can guide you through the process but in theory yes you could get a mortgage to pay for the work.

CPHB2021 · 30/08/2023 10:37

@Tilly1926 thank you! Can you still borrow the same value as if you were buying a house? Say we could borrow £500k could we buy land at £300k and use £200k to build?

Tilly1926 · 30/08/2023 10:59

CPHB2021 · 30/08/2023 10:37

@Tilly1926 thank you! Can you still borrow the same value as if you were buying a house? Say we could borrow £500k could we buy land at £300k and use £200k to build?

Potentially you can - the lender would look at what the house is likely to be worth at the end of the build and how much money you have yourself as a deposit.

Original poster

Flutterbye22 · 30/08/2023 12:59

felisha54 · 30/08/2023 10:00

I got a mortgage several years ago through Halifax with one years accounts.

Thanks!

OP posts:

ScillyGirls · 14/09/2023 20:10

BrightLightTonight · 30/08/2023 07:08

I used a company called “Contractor Mortgages Made Easy”. (CMME)

https://www.cmmemortgages.com/

Show quote history

Hi BrightLightTonight

I'm a sole trader and saw your recommendation, and I spoke with CMME today. The lady seemed very nice. Their fee is 'up to £995 on application of a suitable first charge mortgage'. They also get paid commission from the lender.

Judging from Mumsnet comments, this is a very high fee. Presuming yours was similar (basically, a grand!) would you say you think it is worth it for their knowledge and findings? You are obviously very happy with their service, I'm just wondering why they charge double what others seem to pay for good service (if they pay at all). I am very happy to pay the high fee if it is good value/expertise/ and gets me the right deal, but I don't want to be ripped off.

Many thanks in advance.