Scott Barron 02382 352 322
|
Jack Tutton 02382 352 281
|
hello@sjmortgages.co.uk
SJ Mortgages
  • Mortgages
    • First Time Buyers
    • Remortgage
    • Moving Home
    • Buy to let
    • Case Studies
  • Protection
  • About Us
  • Insights
  • Get in touch
  • Mortgages
    • Mortgages
    • First Time Buyers
    • Remortgage
    • Moving Home
    • Buy to let
    • Case Studies
  • Protection
  • About Us
  • Insights
  • Get in touch

Can I get a mortgage if I have been self employed for less than 2 years?

Posted on 12/10/2023

If you’re self employed and looking for a mortgage, you may have been told that you need to have at least 2 years of self employment under your belt. While this is true for most lenders, there are some who may consider your application if you’ve only been self employed for 1 year.

To increase your chances, you need to present a strong and positive picture of your business and income stability. Lenders will look at factors such as your industry, previous employment history, and whether your turnover matches the income you’re trying to use for your application. Whether you’re a sole trader or limited company, the paperwork required may differ. Keep in mind that lenders will likely ask for your SA302, tax year overview, and business bank statements.

A recent example where we’ve been able to help a client:

Mr and Mrs approached us to see if we could help them purchase their first home. They have been renting for a number of years, but their landlord has decided to sell the property. Mr had only been running his scaffolding for just over a year and were told that they would struggle to get a mortgage after their bank said they couldn’t help. Therefore, understanding whether they could get a mortgage was very important to them given they didn’t really want to rent another property.

We sat down with them and went through their circumstances, we discussed the documents that we would need from his accountant to establish what a lender could use to support their application. Having obtained his accounts and tax returns, we could see that the company had been very successful in just its first year of existence however he left money in the business and didn’t draw it all via dividends. We were able to use his both his director’s salary and the company’s net profits to support their application as this showed a higher income than his tax returns.

Using his company accounts rather than his SA302’s, meant that they were able to borrow a lot more than they had originally thought and buy a home big enough for them and their family.

Being able to use these figures has meant they have been able to apply to purchase their first home together and move in before their landlord sells the property that they are currently renting.

get in touch
Previous Post
How does the news this week impact my mortgage?
Next Post
How do lenders work out what I can borrow?

Recent Posts

Fixed rates vs Variable rates – How do they work?

19/09/2024

MPC reduce the base rate for the first time since March 2020

02/08/2024

Mortgage deal ending in 2024, what does the Base Rate news today mean for me?

14/12/2023

How do lenders work out what I can borrow?

25/10/2023

How does the news this week impact my mortgage?

22/09/2023

As featured in

Contact us
SCOTT BARRON
02382 352 322
JACK TUTTON
02382 352 281

hello@sjmortgages.co.uk

Mon to Fri 9am – 5:30pm

Office 10, Steel House, 4300 Parkway, Whiteley, Fareham PO15 7FP

Follow us
QUICK LINKS
REFER A FRIEND
PRIVACY POLICY
Complaints
regulatory statement
How much can i borrow?
Mortgage Calculator (footer)
£
£
£

This mortgage calculator provides general guidance and is not the definitive answer. The amount you can borrow may vary depending on your circumstances and the figure provided acts as a guide only. Please get in touch to discuss your specific needs.

What you need to know

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it. A fee of up to 2% of the mortgage amount may be charged, depending on individual circumstances. A typical fee is £399.
SJ Mortgages is an appointed representative of John Charcol Limited which is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office Office 10 Steel House, 4300 Parkway, Fareham, PO15 7FP. Registered in England Number 13248757

SJ Mortgages © All Rights Reserved 2025 | Website Designed & Developed by Capture Design
This website uses cookies to improve your experience. If you continue to use this site, you agree with it.