Since the Mortgage Market review (MMR) in April this year, I have had several client’s successfully borrow up to 90% of the value of their homes with two different mortgage lenders with just one years accounts. The proof of income required is either a set of finalised accounts or an SA302 from HMRC. One mortgage lender asked for additional information including a projection of what the next year’s income was going to be from the client’s accountant.
Mortgage lending on one years accounts is relevant for those of you who have successfully been trading for 12-18 months or have changed status i.e. become a Limited Company where previously you were a sole trader.
For those of you who have a business outgoing i.e. car finance in your personal name but who claim this as a business expense when it comes to submitting a tax return, so long as you can prove it is paid from your business account and it is listed within your accounts or tax return breakdown, we should be able to persuade the mortgage lender to ignore this commitment when it comes to assessing affordability for mortgage purposes.