The majority of mortgage lenders require 2 to 3 years accounts.
So if you’re a sole trader, mortgage lenders will go off net profit. If you own a limited company or have limited company shares of over 20%, most mortgage lenders will accept salary and dividends. Some mortgage lenders will use Net Profit plus salary (speak to adviser).
All depends on your business structure and accounting practices.
If you have less than 2 years accounts, we do have access to mortgage providers that will accept one year’s accounts. You are restricted to mortgage lenders though. Again speak to one of advisers based in Manchester and they will go through your options.
For self-employed applicants, mortgage underwriters will check with company’s house, with qualified accountants and will check if you have a website. Some mortgage lenders will have strict accountant qualification requirements. Speak to one of our advisers.
Tip 1- Call us, as we have access to the whole market and will source the right lender for you. We’re aware businesses differ and lenders have different criteria and requirements.
Tip 2- Request SA302’s from your accountant. Your accountant will request this information from Inland Revenue which can take up to 3 weeks to arrive. SA302s are a confirmation of your income.
Tip 3- If you don’t take an income due to tax purposes, you can’t borrow the amount you need as mortgage lenders will be unaware of a regular sustained income. The majority of mortgage lenders due not take Net Profit as an income or working capital. So you’re best seeking mortgage advice before house hunting or putting your home on the market.
Why, because we have access to the whole mortgage market and can source specific mortgage lenders to suit. We have direct access to building societies that are lenient towards maximum ages.
The majority of lenders would have a 70/75 maximum cap. Mortgage lenders such as Halifax are a little stricter and depend on occupation. If your mortgage term exceeds over your expected retirement date, you will have to prove your retirement income. This is where some mortgage applicants are stuck.
Mortgage lenders are increasingly stricter with total loan amounts and most are using their own calculators factoring income and expenses. Problems occur if older applicants are seeking longer mortgage terms due to affordability. Some mortgage lenders will offer a reduced loan amount because their own calculators say so.
Building societies and few banks that are lenient will most likely deal with cases on individual basis and will want to know how the mortgage is serviced in the latter years. Every mortgage lender has its own criteria so you’re best speaking to one of our mortgage advisers to go through your options. We are based in Manchester city centre.
Are you too old for a mortgage? No- providing you find the right mortgage lender to suit your circumstances and providing you can satisfy the mortgage underwriters requirements.