Posted 2 Jul 2019

What mortgage lenders accept 2 years’ accounts?

Many self-employed people contact us about this question. It is true that you may be considered by some high street lenders for a mortgage, even if you only have 2 years’ accounts, but this is rare. Bear in mind that many lenders prefer you to have at least 3 years’ worth of accounts for additional security on their part. Specialist lenders for people who are self-employed will generally offer mortgages to people with good credit scores and 2 years’ worth of accounts that prove their business is successful.

Contacting a specialist self-employed lender

It is advisable to contact a mortgage advisor, such as one of our experts at iam mortgages, to approach a specialist lender for a self-employed mortgage with 2 years’ of accounts. This ensures that your mortgage application is placed in the hands of the right lender to suit your personal circumstances. The advisor will also be able to check the lender’s criteria carefully for you to make sure you are a right fit. If you are not suited to a lender, a mortgage advisor will find another lender for you by searching the market to find one that will accept an application for a self-employed mortgage with 2 years’ of accounts.

Providing proof of income

When making an application for a self-employed mortgage with 2 years’ of accounts, it is important that you provide the lender with the right documentation to support your application, such as bank statements, expenses statements, self assessment tax returns and so on. If you have an accountant, this can prove very helpful, as they will help you to organise your documents correctly so that you have more chance of successfully proving to a lender that you are not a ‘risky’ borrower. As a checklist, you will need:

  • 2 years’ of accounts
  • Your SA302 documents from HMRC
  • Personal bank statements
  • Bank statements from your business, detailing income and expenses

Many lenders are now being more flexible with mortgage offers, and are giving deals to self-employed people with just 2 years’ of accounts to show their trading operations. If you have recently started a business within the last 2 years and need help finding a mortgage that suits your financial and personal circumstances, we can help at iam mortgages.

Our mortgage experts can search the market to find you the right lender that suits your needs and offers a good deal, even with limited records of accounts. Contact our helpful team today by giving us a call or filling in an enquiry form.