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Self employed borrowers can sometimes feel like they’re getting a raw deal when applying for a loan, when you’re not able to provide traditional wage slips or a full three years audited accounts it may seem like you’re constantly hitting a brick wall – we could help!
Loans could be available for self employed borrowers who don’t fit what most people consider to be the ‘standard’ criteria of 3 years audited accounts, whether you’re a director, on contract or a sole trader.
We have included this section because we still get asked about them – In a nutshell they are no longer available.
Years ago lots of self employed people used to use what were known as self cert loans or mortgages, this meant they ‘self certified’ their income without providing any proof to the lender. Usually because they didn’t have enough provable income to satisfy a lender’s affordability model or because it was just easier than getting years of accounts together. These types of loans were open to abuse (it was easy for people to over inflate their incomes).
People often think they need 3 years full audited accounts when applying but this isn’t always the case. There are many lenders who could work with 12 months earnings, even if you don’t have an accountant. If you’re on an unusual contract, we could use a combination of various proofs of income which individually may not be suitable, but put together may suffice. If you’re a sole trader a lender may accept your SA302’s which are provided by the Inland Revenue – the point is you don’t always need 3 years accounts. It could be that the following would be acceptable proof of income:
Starting an application for a homeowner loan for self employed people couldn’t be easier, simply complete the form on this page and we will call you back.