& small business directors
McCoy Mortgages have been specialists in the field of self-employed mortgages from the beginning. We deal daily with over 60 lenders, we understand self-employed mortgages and know how to achieve a successful outcome by matching your financial profile and requirements to the right lender.
And the good news is; all lenders are happy to offer self-employed mortgages providing you meet their lending criteria and can show sufficient income for the mortgage you want. And you won’t necessarily need three years accounts; two years or sometimes just a single year can be all that’s needed.
But applying for a mortgage when you work for yourself is different. An employed person might only have to show a recent payslip and P60 to prove their income, but your income could be from different sources, perhaps a combination of drawings/dividends/share of profits for example (for lending purposes a director of a limited company with a shareholding of 20% or higher is usually considered self-employed) and will need to show the necessary proof.
Planning and preparation can be the key
Here are some things to consider to boost your chances:
Having a suitably qualified account can help
Make sure your accounts are up to date
Ideally, the accounts should show stable or increasing profits
Have your most recent SA302 and Tax Year Overview forms from HMRC available
Have your most recent three months personal and business bank statements available
If you think your credit record is less than perfect, everything possible should be done to maximise your score before applying.
If you plan to purchase a property it can pay to sort out your mortgage first with a pre-approved “decision in principle”. This means that when you find your property, subject to a suitable valuation, making an offer can be done with the confidence that a mortgage can be obtained.
McCoy Mortgages is happy to give advice and apply for decisions in principle on behalf of both existing and new clients at no charge.