Self employed mortgages

Tuesday 21 June 2016 | 11:44 AM

Ok so we all know that if you own and run your own businesss you need three years accounts before you can get a mortgage right?


With some lenders this would be the case, but as with many elements of the mortgage world, lender requirements differ wildly. I have outlined a few of the possible variances below:-

Number of years trading – some lenders will consider an application with just a single year of accounts.

Income used for Limited Company Shareholders – whilst most lenders allow salary plus dividends, a few consider salary plus share of net profit. This can make a huge difference to the borrowing level available in some cases.

Most recent years accounts – for a growing business a lender which bases its mortgage decision on the most recent years income rather than an average of the past two or three years will be an advantage.

Contractors – a growing number of people now work on a contracted basis rather than being a permanent employee. Specialist lenders, often not available on the High Street, have huge experience in this sector.

As can be demonstrated this is an area where business owners should not despair if their natural first port of call (their bank), is either unable to provide a mortgage or falls short of the amount needed as expert mortgage advice can smooth the path to that ideal home.

Not all mortgage lenders are the same - always take local expert advice before committing to a mortgage. Why give up on your dream home when experienced mortgage advisors may be able to help?
Local, face to face, independent mortgage advice can smooth the whole process and we would be delighted to help.

Paul Hardingham and Tony Ibson are Mortgage and Protection Advisers at Innovate Mortgages and Loans. Both have over 20 years of experience advising individuals and businesses across the North East of England. They can be contacted for bespoke advice at or or call 0191 223 3514.

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.