What figures from your business will lenders use when you apply for a mortgage?

It is common misconception that lenders use turnover or gross profit figures to determine how much you can borrow.

When applying for a mortgage, most lenders want to see your business accounts for the last two or three years. Does that mean you unable to buy your dream home until you have been trading for over three years then? Well, it depends.

Which mortgage lender accepts self-employed?

While every lender has their own lending criteria and underwriting requirements, there are no lenders who specialise in mortgages for the self-employed. So, in theory, you can approach any lender and ask them to address your mortgage needs.

Why is it so hard to get a mortgage when you are self-employed?

If you are self-employed, you will go through the same underwriting process and affordability tests as any other borrower. However, you will be required to provide more evidence of your earnings than those who are employed. This is because self-employed income is typically less predictable than those who are salaried and lenders need to ensure that you can afford your mortgage.