Sole Trader Mortgages for Self Employed in North Devon
At Aspire Financial Services, we have helped many people with Sole Trader Mortgages. Unlike Limited Companies, the assessment of a Sole Trader’s income is less complex. Depending on your circumstances we will find the lender that best suits your circumstances.
Most lenders prefer sole traders to have been trading for 2 years or more. Ideally you will already have 2 years’ accounts or SA302 Tax Calculation to show your income. However, there are some lenders that will consider sole traders with less than 2 years’ trading.
Whilst lenders requirements and criteria vary, as a Sole Trader, the various methods that different lenders use are:
- Average of 2- or 3-years’ SA302 (Tax Calculations)
- Average of 2- or 3-years’ Accounts plus SA302 Tax Calculations
- Latest year’s SA302 Tax Calculations.
- They may ask for accountant’s reference, accountant’s projection, or explanation if anything unusual such as sudden growth, or a previous year’s loss has occurred.
We will do a deep dive into your trading finances and then find the most appropriate lender to match your circumstances, maximising your potential for the Self-Employed Mortgage.
Lenders may well also ask for 2-3 years formally completed accounts. They will require your accountants’ details and often ask for their level of qualification. Depending upon the growth of your business, they may take an average of 2 years results or perhaps just the latest year, but if turnover is down, they will use the latest year. If you have made a loss in the most recent year, you will likely be declined.
What Next?
If you are simply too busy running your business or find it confusing when you try to get a mortgage as a self-employed person, contact me at Aspire Financial Services for friendly advice.
Book a free 30 minute consultation now.