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A team of genuine mortgage advisers. Dedicated to assisting you in finding the right lender from our extensive panel. Focused on saving you time (and a few headaches!). Experienced in navigating Bad Credit Mortgages. Contact us for an initial fee-free, no-obligation conversation with an adviser to explore the most suitable mortgage option tailored to your needs.
Yes, it’s possible, but it does narrow down your choices. Many lenders now consider a client’s most recent year’s accounts, which can be advantageous if your business has experienced significant profitability in the current year compared to previous ones. Additionally, some lenders are open to considering self-employed individuals with only one year of accounts.
This varies depending on the structure of your business. If you operate as a sole trader, lenders typically require your most recent year’s tax computations and tax year overviews. However, if you’re a limited company director, they’ll likely request these tax documents along with your latest business accounts as submitted to HMRC.
If you operate as a sole trader, lenders typically assess your borrowing capacity based on your most recent year’s tax year overview and computations, reflecting your annual profit. They then apply a multiplier of 4.5 to determine your borrowing limit, considering your financial commitments like credit cards, loans, and car payments.
For limited company directors, the process differs slightly. Some lenders consider both the net profit generated by the business and the salary you’ve drawn. This approach often results in a higher borrowing capacity compared to assessing only your withdrawals from the business. Similar to sole traders, lenders apply an income multiple of 4.5 to calculate the borrowing amount based on the net profit and director’s salary.
Certainly! If you were initially employed when you arranged your mortgage five years ago and have since transitioned to self-employment, the process remains similar. Most lenders still apply the 4.5 times income multiple to determine your borrowing capacity.
However, let’s consider a scenario where you’ve recently established a new business and haven’t generated sufficient profit to support your desired remortgage amount. In such cases, opting for a product transfer with your existing lender could be a viable solution. This involves staying with the same lender and transitioning to a new product without the need for income assessment. However, it’s essential to weigh this option against others in the market to ensure you’re not missing out on more competitive deals.
This approach provides flexibility in choosing the duration of your new interest rate fixation, although it’s essential to consider the overall cost compared to alternative options available.
Our seasoned advisers stand prepared to assist you whether you’re purchasing or refinancing a home. We’re dedicated to safeguarding your property and lifestyle while also streamlining the process, saving you valuable time and effort. Count on us to secure a competitive deal tailored specifically to your needs.
Absolutely. I have a particular lender in mind that specializes in assisting individuals with bad credit histories and those who have only one year of accounts. Additionally, for limited company directors, this lender considers both your director’s salary and net profits when assessing affordability.
While this lender typically charges a slightly higher interest rate and requires a larger deposit, usually around 10%, it could be a suitable option if you’re determined to purchase your dream property. Ultimately, the slightly higher interest rate is manageable as long as it aligns with your budget and financial goals.
Certainly. There are numerous potential lenders available, including well-known high street names. Even if you have experienced bad credit and only have one year’s worth of accounts, while this may narrow down the options, there are still several providers we can explore.
The major challenge if you’re tackling this alone is the need to individually approach each lender. This would entail scheduling separate mortgage appointments with each one to ascertain whether they’re willing to extend a mortgage with just one year’s accounts. Unfortunately, with many lenders, the response may be a straightforward ‘no’.
This process can eat up a significant amount of time, particularly when you’re already juggling the responsibilities of running your business. It’s unrealistic to expect to have the bandwidth to personally engage with every lender. That’s where I come in. As a mortgage broker, I specialize in navigating these complexities and have assisted numerous individuals who have recently launched their own businesses in securing mortgages.
Drawing on my experience, knowledge, and expertise, I can identify the lenders best suited to your circumstances. By entrusting this task to me, you’ll not only save valuable time and effort but also gain the peace of mind to focus on what matters most – running your business effectively.
It definitely expands your options when you have two years’ accounts, but even if you’re set on a property and eager for a mortgage, it’s still achievable. Securing a mortgage with just one year’s accounts is within reach, especially if we can connect you with a reputable high street lender. Surprisingly, the rates offered by these lenders may even be more competitive than anticipated.
With my assistance, we can explore the available options and work towards securing the best deal possible for you.
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable in any other country that may have access to it.
Lynton Mortgages is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited, which is authorised and regulated by the Financial Conduct Authority. Just Mortgages Direct Limited Registered office: Colwyn House, Sheepen Place, Colchester, Essex, CO3 3LD. Registered in England No: 2412345.
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