Sole Trader Mortgages for Self Employed in Cheshire
At Aspire Financial Services, we have helped many Sole Traders with their mortgages. Unlike Limited Companies, the assessment of Sole Trader income is less complex, although depending on your circumstances we will find the lender that best suits your circumstances for sole trader mortgages.
Most lenders prefer to lend to sole traders only if they have been trading for 2 years or more. Ideally you will already have 2 years’ accounts or tax documents to show your income. However, there are some lenders that will consider lending to sole traders with less than 2 years’ trading.
Whilst lenders requirements will vary, if you are a Sole Trader, here are the various methods that different lenders use:
- 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 mortgage loan.
Lenders may ask for 2-3 years completed accounts as well. They will require accountants’ details and often ask for their level of qualification. Depending on the growth of your business, they may take an average of 2 years or perhaps just the latest year, but if turnover is down, they will most definitely use the latest year. If you have made a loss in the most recent year, you will most likely be declined.
What Next?
If you are simply too busy running your business or find it confusing or intimidating when you try to get a mortgage as a self-employed person, contact me at Aspire Financial Services for friendly advice for your sole trader mortgages.
Book a free 30 minute consultation now.