Can I still get a mortgage if I am a limited company director or self employed?

Being one of our specialist niches, we’ve been keeping in regular contact with lenders who offer mortgages to small business owners and independent professionals.

While there have been some restrictions, in the main there have been very few changes to criteria. This is great news. However, small business owners and the self employed will be under much closer scrutiny by underwriters.

To be honest, this is to be expected. The good news is that there are still options, but preparation work will be more important than ever when presenting a case to a lender.

Lenders will be paying particular attention to riskier lending. This could include –

  • One year’s accounts
  • Using projections
  • Using profits instead of dividends
  • Using the latest year where there’s a jump in profits

They will be looking at the business and the related industry more closely. It’s likely they will want further reassurances from accountants around sustainability. Again, this makes sense, but may put some accountants in a difficult position depending on the individual circumstances.

The good news is that lenders are still looking to lend. However they need to be satisfied that the business is robust with sustainable profits.

In the current climate this can be a tough ask so preparation is vital. If you are a prudent owner of a well run business you should be able to get a mortgage. It’s just more difficult than it was a few weeks ago.

Get in touch if you have any questions about self employed mortgages. We’re here to help.