Non Status Mortgages
Historically non status mortgages allowed self employed people to borrow on the basis of an income that was declared by the borrower, but due to abuse these products have been banned in the UK. Even through mortgage lenders tend to take a cautious view of the self employed, there are still options for self employed borrowers including specialist lenders who look at self employed borrowers more favourably.
If you are unable to provide two or three years’ accounts or your accounts do not really reflect your current company position then a mortgage through a specialist lender may be a 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, specialist lenders have introduced mortgage products which are suited to self employed borrowers.
Although non status mortgages are no longer an option, there are mortgage products available which are appropriate for the self employed.
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 could receive offers from at least a couple of specialist 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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