Historically high street mortgage lenders have taken a cautious view of the self employed or other people who have difficulty proving their income such as unsalaried company directors and contract workers.

If you have difficulty proving your income, are unable to provide two or three years’ accounts or your accounts do not really reflect your current company position then a non status mortgage may be the way forward. Quite often a good accountant will organise finances in a way that minimises an individuals tax liability, meaning company accounts can hide the true success of the business.

Working patterns have evolved, more and more people work for themselves and increasing numbers of people are employed on short term contracts. In response, lenders have introduced what are known as non status mortgages. Instead of providing proof of income such as statements, company accounts, bank statements or previous mortgage history, you make a declaration of affordability. The borrower simply confirms they can afford a mortgage without needing to state or demonstrate income. 

Non status mortgages (also known as self cert) can be appropriate for the self employed although they are not exclusive to them. Unsalaried company directors and contract workers are also suitable.

However this type of product is not suitable for everyone and a broker will first assess whether you can get access to a mainstream product.

For mainstream products, lenders will want to see proof of income, but this is not as complicated as it once was. Some mortgage companies state that they need audited accounts, but in practice, almost all will accept an Inland Revenue Self Assessment tax return.

Some banks and building societies will ask for three years' figures, but many will accept two years' or even one year and a projection. A home buyer who can produce at least one year's accounts should receive offers from at least a couple of lenders.

A specialist broker has access to the entire range of mortgage products available in the UK and can guide you to the best deals available.

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